New York Community Bancorp (NYSE: NYCB) stock rose 4% on Friday after Moody’s Investors Service upgraded the bank’s long-term issuer rating.
Moody’s, the renowned credit-ratings firm, announced a significant upgrade to New York Community Bancorp’s (NYCB) long-term issuer rating on Friday. The rating has been elevated from B3 to B2, marking a notable improvement. However, NYCB remains five levels below investment grade, firmly in junk territory.
This upgrade follows the recent capital injection received by the beleaguered lender, led by prominent investor Steven Mnuchin.
Moody’s rationale for the upgrade includes the recent unqualified audit opinion in NYCB’s annual report, signifying a fair representation of its financial statements.
Moody’s had previously downgraded NYCB to junk status in February and further reduced the rating earlier this month.
In a statement released on Friday, Moody’s expressed confidence in the bank’s improved position, stating,
“The capital injection and audit report have put the bank on a firmer footing following the various adverse developments that have affected it since its Jan. 31 announcement of a significant quarterly loss.”
The firm added,
“At the same time, NYCB still faces several key decisions in its strategic development and in effectively addressing its fundamental challenges in governance, financial profile, risk management and internal controls.”
Moody’s has revised NYCB’s rating outlook to positive after undergoing a review process.
New York Community (NYSE: NYCB) Stock Movement
NYCB stock jumped 4% to close at $3.90 on Friday. The traders had exchanged hands with 59,447,888 (59.44 million) shares compared to the average daily trading volume of 37.03 million.
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