NYCB's "outsized" CRE exposure prompts Morningstar DBRS downgrade
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FILE PHOTO: A screen displays the trading information for New York Community Bancorp on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 31, 2024. REUTERS/Brendan McDermid/File Photo
(Reuters) - Morningstar DBRS downgraded the credit rating of New York Community Bancorp to "BBB" from "BBB (high)" on Thursday, citing the lender's "outsized" exposure to commercial real estate loans compared to its peers.
The rating agency said the trend for all credit ratings is 'negative'.
Investors fear weak demand for offices could trigger a wave of defaults and pressure banks, which are hoping to avoid selling CRE loans at significant discounts.
Shares of the bank were down last down 1.5% in volatile premarket trading.
(Reporting by Manya Saini in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)
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