DBRS Assigns New BBB Subordinated Debt Rating to New York Community Bancorp, Inc.

DBRS, Inc. (DBRS) assigned a new BBB Subordinated Debt rating to New York Community Bancorp, Inc. (NYCB). The trend is Stable, in line with the trend on NYCB’s Long-Term Issuer Rating, which was confirmed on September 7, 2018.

KEY RATING CONSIDERATIONS
The Subordinated Debt rating is one notch below NYCB’s Long-Term Issuer Rating of BBB (high), in line with DBRS’s notching guideline outlined in its Global Methodology for Rating Banks and Banking Organisations (July 2018).

RATING DRIVERS
While DBRS views the rating as well-placed, over the longer-term, sustained levels of better-than-peer earnings generation, greater revenue diversity and an improved funding profile could result in upward ratings pressure. Conversely, a deterioration in asset quality, especially as a result of perceived underwriting weakness, or an increase in lending risk appetite could pressure ratings.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Global Methodology for Rating Banks and Banking Organisations (July 2018), which can be found on our website under Methodologies.

The primary sources of information used for this rating include company documents and SNL Financial. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

Lead Analyst: John Mackerey, Vice President – Global FIG
Rating Committee Chair: Michael Driscoll, Managing Director – Head of NA FIG
Initial Rating Date: 13 October 2006
Last Rating Update: 7 September 2018

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrs.com.