Some NYCB deposits may be a flight risk after Moody’s downgrades ratings again
Publishing timestamp: 2024-03-05 08:03:00
Summary
Moody's has slashed NYCB's key ratings for the second time in a month, leading to concerns about the bank's ability to retain deposits. The regional lender has been in a stock freefall since reporting a surprise fourth-quarter loss and steeper provisions for loan losses. Moody's downgrade could trigger contractual obligations from business clients who require an investment-grade deposit rating. NYCB's deposits are of key interest to analysts and investors, with concerns about possible flight of deposits since the ratings cuts. To replace deposits, NYCB may need to raise brokered deposits, issue new debt, or borrow from the Federal Reserve's facilities at a higher cost.
Sentiment: NEGATIVE
Tickers: NYCB,
Keywords: new york community bancorp inc, business news, investment strategy, breaking news: investing, banks, breaking news: markets, breakingnewsglobal,