NEW YORK -- Moody's Investors Service said it downgraded the rating of Fidelity Federal Bank's long-term deposits to Ba3 from Ba1.

The Glendale, Calif., thrift's rating for short-term deposits was not under review, and was confirmed at Not Prime. Fidelity Federal has $5 billion in assets and is owned by Citadel Holding Corp.

The rating agency cited capital and asset-quality weakness, particularly in commercial real estate and multifamily housing, but said core earnings are acceptable and interest-rate sensitivity moderate.

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