Fitch downgrades NY Community Bancorp to BB+, outlook negative

Published 03/01/2024, 06:55 PM
Updated 03/01/2024, 07:00 PM
© Reuters. 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
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(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 (NYSE:NYCB) to 'BBB-' from 'BBB'.

Fitch said its decision came from reassessing New York Community Bancorp's (NYSE:NYCB) risk profile, following New York Community Bancorp's (NYSE:NYCB) 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.

© Reuters. 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

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).

 

 

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