Fitch Downgrades IndyMac's Servicer Ratings

Fitch Ratings has downgraded IndyMac Bank's residential servicer ratings. The rating agency cut the bank's primary servicer rating for prime, Alt-A and subprime products to 'RPS2' from 'RPS2+' and downgraded IndyMac's special servicer rating to 'RSS2' from 'RSS2+.' The ratings remain on Rating Watch Negative. Fitch said that the rating actions reflect the underlying corporate rating of the company's parent, IndyMac Bancorp and IndyMac Bank, FSB, whose long-term issuer default ratings were downgraded to 'BB' from 'BBB-' on Jan. 24. The ratings remain on Rating Outlook Negative. "The rating actions also reflect the continued pressure on IndyMac's financial flexibility in the increasingly challenged residential mortgage market and its potential impact on IndyMac's loan servicing operation," the rating agency said in a release.