Fitch Affirms New York Community Bancorp's IDR at 'BBB'; Outlook Stable.

NEW YORK -- Fitch has affirmed New York Community Bancorp, Inc.'s (NYB) ratings as follows:

-- Long-term Issuer Default Rating (IDR) at 'BBB';

-- Short-term issuer rating at 'F3';

-- Individual rating at 'B/C';

-- Support rating at '5'.

NYB's rated subsidiaries are also affirmed. A complete list of ratings follows this release. The Rating Outlook is Stable.

The ratings of NYB are underpinned by its strong asset quality and solid capital position combined with its sizable franchise in Metropolitan New York. The ratings are constrained by below average profitability and reliance on short-term funding sources. The Stable Rating Outlook reflects the expectation for a stabilizing net interest margin (NIM) and steady profitability overall, combined with the maintenance of solid asset quality and a sound capital position.

In recent years, NYB's profitability has been affected by a declining NIM, stemming mostly from rising short-term rates. NYB has been particularly pressured due to its liability sensitive balance sheet. In an effort to reduce its interest rate sensitivity, NYB extended the maturities of borrowings and used proceeds from the sale of securities to reduce short-term borrowings; nevertheless, a high proportion of short-term funding remains. The Atlantic Bank of New York (ABNY) deal brought in more core deposits, but the relatively small scale of this deal lessened the effect on the funding mix. As a result of these actions, NYB was able to report a modestly higher NIM in the second quarter of 2006 (the first linked quarter increase since the first quarter of 2004). Nevertheless, NIM still remains well below levels of prior years. Management's outlook for the NIM is stable. However, any significant increase in short-term interest rates could further pressure the NIM, given a still considerable level of short-term obligations. The NIM will likely be positively affected over the next year by a refinancing of a large portion of the multi-family portfolio at higher rates.

Asset quality measures remain comparatively strong with a modest NPA level and ample reserve coverage of non-performers. In recent years, net charge-offs have been at negligible levels. The recent acquisitions of ABNY and Long Island Commercial Bank (LICB) boosted commercial banking activities, yet most of NYB's loan book remains focused on low-risk, multi-family lending. To finance the ABNY acquisition, NYB issued $400 million of new common equity in April 2006. This issue enhances NYB's capital position, especially its level of tangible equity, adding to its financial flexibility. NYB's capital ratios remain considerably above 'well capitalized' regulatory levels.

Fitch has affirmed the following ratings with a Stable Outlook:

New York Community Bank 

-- Long-term IDR at 'BBB';

-- Short-term issuer rating at 'F2';

-- Long-term deposits at 'BBB+';

-- Short-term deposits at 'F2';

-- Individual rating at 'B/C';

-- Support rating at '5'.

New York Commercial Bank

-- Long-term IDR at 'BBB';

-- Short-term issuer rating at 'F2';

-- Long-term deposits at 'BBB+';

-- Short-term deposits at 'F2';

-- Individual rating at 'B/C';

-- Support rating at '5'.

New York Community Statutory Trust II

-- Trust preferred stock at 'BBB-'.

Richmond County Capital Corp.

-- Preferred stock at 'BBB-'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.