Moody’s Investors Service cut its ratings on Silvergate Capital Corp. and its bank subsidiary Silvergate Bank, citing concern about its viability amid the crypto market’s turmoil and a crackdown by federal regulators.
Silvergate Capital’s long-term issuer rating fell to Ca from B3, with the potential for another cut, Moody’s said in a statement. It cited the March 1 announcement that Silvergate is evaluating its ability to continue as a going concern and that additional losses will hurt regulatory capital ratios, which may leave the company and the bank less than well-capitalized.
