by Cassie B., Natural News:

Moody’s Investors Service has downgraded its credit rating for New York Community Bancorp (NYCB) to junk status – its lowest investment-grade rating – as the troubled regional bank continues to struggle. The downgrade pushed its credit rating down two full notches and indicates serious doubts about whether it will be able to repay debt holders.

According to Moody’s, the downgrade was prompted by the news that the bank experienced a surprisingly high loss on exposure to the commercial real estate market, which it focuses on heavily and is currently not faring well. It also cut its dividend in order to adhere to tougher regulatory requirements.