Fitch downgrades NYCB's bank rating to 'junk' 📊

11:01 AM 4 March 2024

The rating agency Fitch Ratings has decided to downgrade the rating of New York Community Bancorp (NYCB.US) to 'junk' status, with a negative outlook. Last week, Moody's also downgraded the rating, a day after the bank, which is struggling with commercial real estate (CRE) problems, reported that it had identified "significant weaknesses" in its previously conducted credit risk analysis.

  • Fitch downgraded the bank's long-term issuer rating to BB+, i.e., to a level below investment grade (compared to BBB- previously). Moody's, at the end of February, downgraded the rating to B3 from Ba2.
  • Fitch stated that the weaknesses, which the bank informed about, prompted analysts to reconsider the problems in terms of the level and adequacy of reserves, especially with reference to concentrated exposure to commercial real estate.
  • Moody's, on the other hand, indicated that NYCB may be forced to further increase credit loss reserves over the next two years due to credit risk associated with office loans. The bank also highlighted significant risk of overestimation of so-called multifamily loans, which, alongside CRE, are another risk factor.

On Friday, NYCB's shares fell by over 25%, although the institution conveyed that it does not expect the problems related to risk control to lead to further write-offs for credit losses. The current (new) CEO of the bank, Alessandro DiNello, emphasizes that the bank still has considerable liquidity and solid deposits; he also expressed belief that business restructuring will succeed, but Wall Street clearly does not give it a chance. Despite Fitch's decision, the bank's shares are gaining so far in premarket by over 1.3%.

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

NYCB Shares (D1)

Source: xStation5

Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence