Flagstar stock rallies as bank shores up its credit quality and draws an upgrade - MarketWatch

1. Flagstar's stock rose 7% after an analyst upgrade for capital improvement efforts. 2. The bank's fourth-quarter loss was better than expected, losing 41 cents per share. 3. Analysts upgraded Flagstar due to its stock trading 64% below total book value. 4. Flagstar's tier-one capital ratio improved to 11.9%, top among its peers. 5. Loan losses decreased, but challenges remain as the bank is still unprofitable.