GLENDALE, Calif. - Fidelity Federal Bank FSB's uninsured CDs were downgraded to B-minus/B from B-plus/B by Standard & Poor's Ratings Group.

Additionally S&P lowered its long-term counterparty rating on Fidelity Federal to CCC from B-minus and its short-term counterparty rating on the thrift to C from B. The ratings outlook is negative.

S&P said the thrift's ratings profile remains highly strained despite its successful 1994 recapitalization and asset disposition programs.

Expected benefits from those programs have not materialized as problems continue to surface within the thrift's large portfolio of California multifamily real estate loans. As a result, said S&P, the thrift's financial flexibility remains compromised.

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