Moody’s Cuts NYCB Ratings to Junk, Warns of More Downgrades

Rating agency Moody’s downgraded New York Community Bancorp’s all long-term and some short-term issuer ratings to junk on Tuesday and warned of further downgrades. The agency also downgraded all long-term and some short-term ratings and assessments of its lead bank, Flagstar Bank. Moody’s downgraded NYCB’s ratings from Baa3 to Ba2, which is considered a junk rating. The downgrade reflects Moody’s views that NYCB faces high governance risks from its transition with regards to the leadership of its second and third lines of defense—the risk and audit functions of the bank—at a pivotal time, the agency said....