(Reuters) -Fitch Ratings on Tuesday downgraded embattled regional lender New York Community Bancorp ( NYCB ) and its bank subsidiary, Flagstar Bank, to 'BB' from 'BB+'.

The ratings agency said the downgrade reflects its assessment that NYCB has a weaker earnings and profitability profile coupled with the execution risk associated with its restructuring plan.

Fitch, however, said its rating outlook on the bank is positive as the risks over the rating horizon have stabilized.

Fitch had earlier in March downgraded NYCB's long-term issuer default ratings (IDRs) to 'BB+'/'B' from 'BBB-'/'F3'.