N🟁N

Fitch Affirms BankAtlantic's L/T IDR of 'CC' on OTS Cease and Desist Order

  //business-finance.news-articles.net/content/201 .. l-t-idr-of-cc-on-ots-cease-and-desist-order.html
  Published in Business and Finance on Friday, February 25th 2011 at 12:10 GMT by Market Wire
          ^{🞛 This publication is a summary or evaluation of another publication}

NEW YORK--([ BUSINESS WIRE ])--Fitch Ratings has affirmed its current Issuer Default Ratings (IDR) for BankAtlantic Bancorp (NYSE: BBX) and its main subsidiary, BankAtlantic FSB (BFSB) at 'CC'/'C' following today's announcement regarding the regulatory order with the Office of Thrift Supervision (OTS). A list of the company's ratings is provided at the end.

BankAtlantic has announced that it has entered into a Cease and Desist Order with the OTS at both the bank and holding company level. The regulatory order includes increased regulatory capital requirements, limits to the size of the balance sheet, no new commercial real estate lending and improvements to its credit risk and administration areas. Further, the holding company must also submit a capital plan to maintain and enhance its capital position.

BankAtlantic FSB's regulatory capital requirements were increased to Tier1 (Core) equal to or greater than 8% and Total Risk Based Capital equal to or greater than 14% and must comply by June 30, 2011. As of Dec. 31, 2010, BankAtlantic FSB reported Tier 1 Core of 6.22% and Total RBC of 11.72% and thus was not in compliance with the new capital requirements.

The company has stated that it anticipates an improvement to regulatory capital ratios of 130 basis points from the net gain resulting from the sale of its Tampa branches, which is expected to close in June 2011. Although this would improve the bank's capital position, the company would still not comply with the capital requirements in the regulatory order based on capital ratios today.

In September 2010, Fitch's rating action incorporated the view that BBX would be required to raise additional capital given continued credit deterioration, the weak core operating performance of the bank and the impact to its capital position. Fitch noted that the company was operating with significantly low levels of tangible equity and that regulatory capital levels would likely be affected.

Further, Fitch stated that ratings could be downgraded further if BBX is unable to raise additional capital to address potential needs. Future rating actions could lead to the downgrade of the Individual Rating to 'F', which denotes a bank that has either defaulted or, in Fitch's opinion, would have defaulted if it had not received external support, and is inline with Fitch's criteria and definitions of a 'failure'.

Fitch has affirmed the following ratings:

BankAtlantic Bancorp

--Long-term IDR at 'CC';

--Short-term IDR at 'C';

--Individual Rating at 'E';

--Support Rating at '5';

--Support Floor at 'NF'.

BankAtlantic FSB

--Long-term IDR at 'CC';

--Long-term deposits at 'CCC/RR3';

--Short-term IDR at 'C';

--Short-term deposits at 'C';

--Individual at 'E';

--Support Rating at '5';

--Support Floor at 'NF'.

Additional information is available at '[ www.fitchratings.com ]'.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 16, 2010);

--'Bank Holding Company' (Dec. 30, 2009);

--'Rating Hybrid Securities' (Dec. 29, 2009);

--'Equity Credit for Hybrid Securities--Amended' (Dec. 29, 2009);

--'Short-Term Ratings Criteria for Corporate Finance' (Nov. 2, 2010).

Applicable Criteria and Related Research:

Short-Term Ratings Criteria for Corporate Finance

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=568726 ]

Rating Hybrid Securities

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493086 ]

Global Financial Institutions Rating Criteria

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685 ]

Bank Holding Companies

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493324 ]

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: [ HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS ]. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '[ WWW.FITCHRATINGS.COM ]'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.