New York Community Bancorp (NYSE:NYCB) stock is in the news Wednesday after the financial company’s shares were hit with a credit downgrade from Moody’s.
This downgrade has Moody’s dropping the credit rating for New York Community Bancorp from investment grade to high-yield. This is the same as applying a “junk” credit rating to the financial services company.
Moody’s highlighted several reasons for its New York Community Bancorp credit downgrade. Among them are governance challenges, potential confidence sensitivity, “relatively high dependence” on wholesale funding and a smaller supply of liquid assets compared to its competitors.
Alessandro DiNello, Executive Chairman of New York Community Bancorp, said the following in a statement to Yahoo Finance:
“I don’t know what the future is going to hold but we are in a position given the earnings power of this organization to outrun any provision need that we may have.”
NYCB Stock Movement on Wednesday
Today’s credit downgrade brings with it heavy trading of NYCB stock as traders sell shares. That has more than 22 million units moving as of this writing. This is already well above its daily average trading volume of about 16.5 million shares.
NYCB stock is down 6.9% as of Wednesday morning and is down 62.4% since the start of the year.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
