NEW YORK - Standard & Poor's Corp. reduced the rating on Fidelity Federal Bank's uninsured certificates of deposit to BB-plus/B from BBB-minus/A-3.

The move reflected S&P's expectations of further asset-quality problems in the Glendale, Calif., thrift's large multifamily-home loan portfolio.

While Fidelity's parent, Citadel Holding Corp., has announced a $30 million common stock rights offering to bolster capital, it "may be insufficient to offset potential larger loan-loss provisions if assets quality problems mount," S&P said.

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