Fitch Ratings has lowered the ratings of New York Community Bancorp (NYCB.N), opens a new tab, and Flagstar Bank, the bank subsidiary of New York Community Bancorp, to 'BB+'/'B' from 'BBB-'/'F3'.
Earlier in the month of February, Fitch had already reduced the long-term issuer default ratings (IDRs) for New York Community Bancorp from 'BBB' to 'BBB-'.
In response to New York City Bank's notification of a material weakness in the company's internal controls relating to an internal loan review, Fitch stated that its decision was based on a reassessment of the risk profile of the financial institution.
Additionally, the rating agency stated that it had a negative view on the bank. Several other companies, including Morningstar DBRS, have lowered the credit rating of the troubled lender.
A "outsized" exposure to commercial real estate (CRE), which is a type of real estate investment, was the basis for the reduction of the bank's credit rating.
There has already been a decrease in the ratings that Moody's has assigned.
On Thursday, Fitch accorded its approval to the appointment of Alessandro Dinello to the role of Chief Executive Officer.
This decision was made after taking into consideration the fact that Dinello had previously served in the capacity of Chief Executive Officer at Flagstar Bancorp.
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