NEW YORK - Standard & Poor's Corp. revised to "negative" from "stable" its outlook for Western Financial Savings Bank's subordinated debt and uninsured certificates of deposit.

However, the rating agency affirmed its BBB-minus on the subordinated debt and its BBB/A3 on the CDs.

The moves covered about $75 million of debt.

Western in based in Orange, Calif. The change reflected deterioration in asset quality, stemming from Western's exposure to California real estate.

About $540 million, or one-quarter of the thrift's loan portfolio, consists of mortgage loans on generally risky, multifamily dwellings, the ratings agency said.

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