May 7 (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.

Last week, NYCB reported a first-quarter loss of $327

million, or 45 cents per share, as the lender set aside higher

provision for credit losses due to its exposure to the

beleaguered commercial real estate sector.

The lender had said it expected annual loss to be

between 50 cents and 55 cents in 2024, indicating there will be

little relief in the near-term as it anticipates an elevated

level of loan loss provision over the remainder of the year.

Fitch, however, said its rating outlook on the bank is

positive as the risks over the rating horizon have stabilized.

The ratings agency said that it anticipates NYCB's realized

losses will unfold over time and are likely to exceed those of

peers given its weakening asset quality.

Fitch had earlier in March downgraded NYCB's long-term

issuer default ratings (IDRs) to 'BB+'/'B' from 'BBB-'/'F3'.