Fitch Ratings has downgraded the short-term issuer default ratings of IndyMac Bancorp Inc. and IndyMac Bank FSB from F2 to F3.Fitch also removed IndyMac Bancorp from Rating Watch Negative and assigned it a negative rating outlook, and downgraded the rating on IndyMac Bank's short-term deposits from F2 to F3. Fitch said IndyMac's "consistent profitability, strong competitive position in nonagency lending, and the ability to meet financing needs through loan sales" have in the past justified a higher short-term IDR than its long-term IDR. "However, disruption in the nonagency secondary mortgage market has diminished these strengths and lends support to a lower short-term IDR," the rating agency said. Fitch said the revision of IndyMac's rating outlook was based on "challenging market conditions" and the fact that IndyMac "lacks the revenue diversification found in larger banks." Fitch can be found online at http://www.fitchratings.com.

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