Fitch Affirms Astoria Financial's Ratings; Outlook Remains Negative (Business Wire)

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed Astoria Financial Corporation's (AF) Long-Term and Short-Term Issuer Default Ratings (IDR) at 'BBB+' and 'F2', respectively. The Outlook remains Negative. AF's ratings are as follows: --Individual rating at 'B/C'; --Senior unsecured at 'BBB+'; --Support Floor at 'NF'. The Negative Outlook reflects Fitch's view that AF's operating performance will remain below peer levels and that asset quality may be pressured due to continued adverse macro-economic factors. While the company experienced an improvement to the margin during second-quarter 2008, profitability is considerably lower than historical standards, driven largely by a high level of interest rate risk exposure. AF funds its adjustable rate loan portfolio primarily with short-term deposits; however, the flat yield... [read full story]