All articles tagged with #credit rating downgrade
Moody's downgraded Israel's credit rating from A1 to A2 and changed the financial outlook to "negative," citing Prime Minister Benjamin Netanyahu's desperate attempts to maintain power, support for religious fascists, and adherence to God-fearing economic policies as contributing factors. This marks Israel's first-ever credit rating downgrade.
New York Community Bank's shares surged after appointing its chairman, Alessandro DiNello, as executive chairman to address operational challenges following a credit rating downgrade by Moody's. The bank's stock had plummeted nearly 60% after reporting a surprise loss and facing mounting losses on commercial real estate, prompting a 71% dividend cut. Moody's downgraded the bank's long-term ratings due to concerns about governance and risk management, while NYCB sought to reassure investors by emphasizing its liquidity and efforts to strengthen risk management. The bank is now searching for new leadership in risk and audit functions.
Moody's downgraded New York Community Bancorp's credit rating to junk status due to concerns about its exposure to struggling commercial real estate, causing a 17% drop in after-hours trading. The downgrade reflects worries about the bank's ability to repay debt holders, its funding and liquidity weaknesses, and the potential impact of uninsured deposits. The bank's market value has plummeted, and further downgrades are possible as regulators work with banks to manage risks from bad real estate loans.
Mortgage rates in the United States are on the rise, approaching 7%, following the downgrade of America's credit rating. This increase in rates could impact homebuyers and the overall financial market, as interest rates play a crucial role in determining affordability and demand for housing.
Global stock markets experienced a decline after Fitch downgraded the US credit rating, citing concerns over governance standards and the growing debt burden. Japan's Nikkei 225 and Hong Kong's Hang Seng indices both fell significantly, while European stocks also saw a decline. US stock futures slipped, but US Treasuries prices rose. Fitch highlighted the January 6th insurrection and repeated debt limit standoffs as significant concerns. China and Japan are the largest foreign investors in US government debt, but Goldman Sachs analysts believe there won't be forced selling due to the downgrade.
First Republic Bank's stock fell 8% after another credit rating downgrade, making it the most actively traded bank stock on the NYSE. Bank stocks traded mixed after steep losses in the previous session, with Comerica and Zions Bancorp falling 6% and 4.2%, respectively. Truist analyst Brandon King cut stock price targets and earnings estimates for a host of banks, while Stifel Financial Corp. announced the expansion of its venture capital lending unit by hiring three "key" partners formerly with Silicon Valley Bank.
First Republic Bank, one of the nation's larger institutions, is exploring options to shore up its finances and calm jittery investors, including a possible sale to a larger rival or a financial rescue that could include a quick injection of new cash. The bank's shares have plunged 60% since last Thursday, and its credit rating has been downgraded to junk levels. Deposit withdrawals have also increased, with roughly two-thirds of First Republic's deposits above the federally insured limit of $250,000.