Moody’s Downgrades Silvergate Bank’s Rating from Ba3 to B2
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Moody’s has just downgraded Silvergate Bank’s rating to B2 from Ba3 after cutting the bank’s underlying credit rating.
The company experts have said they have made the decision due to significant decrease in capital after a loss of $1.05 billion in October-December 2022.
In the last reporting period, the bank faced an outflow of deposits and took a number of actions to maintain liquidity. The company initially resorted to wholesale financing, and then to the sale of debt securities.
The deterioration of the operating environment caused the collapse of FTX, which was a client of the bank.
Silvergate reported in November 2022 that less than 10% of its deposits were placed on the trading platform.
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