New York Community Bancorp sinks with junk rating on real estate fears.

The credit rating of New York Community Bancorp has been downgraded to junk status by Moody’s Investors Service due to concerns about the bank’s exposure to the struggling commercial real estate market. The downgrade has caused the bank’s shares to plummet and Moody’s has warned of potential funding and liquidity pressures if there is a loss of depositor confidence. Treasury Secretary Janet Yellen said that US officials are monitoring the banking stress carefully and working with banks to manage the risks they face from bad real estate loans. Moody’s is keeping New York Community Bancorp’s credit rating on review, indicating further downgrades could be possible.