NYCB Cut to Junk by Moody’s as Stock Hits Lowest Since 1997
- Moody’s cuts regional bank two notches, says it may go further
- It cites governance, other risks at commercial property lender
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New York Community Bancorp’s credit grade was cut to junk by Moody’s Investors Service less than a week after the regional lender alarmed shareholders by slashing payouts and stockpiling reserves to cover troubled loans tied to commercial real estate.
The bank is facing “multifaceted” financial risks and governance challenges, Moody’s wrote in a report Tuesday, lowering the company’s long-term issuer rating two notches below investment grade to Ba2. The ratings firm said it could go further if conditions deteriorate.