Fitch downgrades NY Community Bancorp to BB+, outlook negative
A sign is pictured above a branch of the New York Community Bank in Yonkers, New York, U.S., January 31, 2024. REUTERS/Mike Segar/File Photo
NYCB
-25.89%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Please name your holdings portfolio
Type:
BUY
SELL
Date:
Amount:
Price
Point Value:
Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
Create New Watchlist
Create
Create a new holdings portfolio
Add
Create
+ Add another position
Close
(Reuters) – Fitch Ratings has downgraded New York Community Bancorp (NYSE:NYCB) and its bank subsidiary Flagstar Bank to ‘BB+’/’B’ from ‘BBB-‘/’F3’.
Fitch earlier in February had already downgraded long-term issuer default ratings (IDRs) for New York Community Bancorp (NASDAQ:CTBI) to ‘BBB-‘ from ‘BBB’.
Fitch said its decision came from reassessing NYCB’s risk profile, following NYCB’s announcement of a material weakness in the company’s internal controls related to an internal loan review. The agency added its rating outlook on the bank is negative.
Several other firms have downgraded the embattled lender, including Morningstar DBRS that downgraded the bank’s credit rating due to “outsized” exposure to commercial real estate (CRE). Moody’s (NYSE:MCO) has already cut their ratings.
Fitch said it positively viewed Thursday’s appointment of Alessandro Dinello as CEO, given his tenure as CEO of Flagstar Bancorp (NYSE:FBC).
