Moody’s raises NY Community

Moody’s Ratings upgraded all long-term ratings and assessments of New York Community Bancorp, Inc. as it closed on its $1.05 billion infusion of capital commitments from several institutional investors.

The upgrade includes the long-term issuer rating to B2 from B3 and Flagstar Bank, NA’s long-term deposits to Ba2 from Ba3. Flagstar’s baseline credit assessment was moved to b1 from b2.

The subordinated debt rating on Flagstar shifted up to B2 from B3, which is assumed by New York Community Bancorp.

New York Community Capital Trust V’s backed preferred stock rating was listed to B3 (hyb) from Caa1 (hyb).

The outlook was changed to positive from rating under review, and the outlook on Flagstar's long-term bank deposits and long-term issuer rating were also changed to positive from rating under review.

The rating outlook for New York Community Capital Trust V was changed to positive from rating under review.

Moody's said the capital injection and unqualified audit report on its financial statements have put the bank on a firmer footing following the various adverse developments that have affected it since its January 31 announcement of a significant quarterly loss.

The capital raise will increase NYCB's common equity tier 1 capital ratio to approximately 10.2% on a proforma basis, assuming full conversion of preferred equity to common equity.

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