(Rewrites, provides particulars from Moody’s launch all through)
Feb 6 (Reuters) – Score company Moody’s downgraded New York Group Bancorp’s long-term and short-term issuer scores to junk on Tuesday and warned of additional downgrades.
The company additionally downgraded all long-term and a few short-term scores and assessments of its lead financial institution, Flagstar Financial institution.
Moody’s downgraded NYCB’s scores from Baa3 to Ba2, which is taken into account a junk ranking.
The downgrade displays Moody’s views that NYCB faces excessive governance dangers from its transition as regards to the management of its second and third traces of protection – the chance and audit capabilities of the financial institution – at a pivotal time, the company mentioned.
The ranking company additionally mentioned the elevated use of market funding might restrict the financial institution’s monetary flexibility within the present atmosphere. (Reporting by Gursimran Kaur in Bengaluru; Enhancing by Rashmi Aich)
