Moody's cuts Astoria Financial outlook to negative

Moody's Investors Service said it changed the outlook on Astoria Financial Corp. (issuer at A2) and its subsidiary, Astoria Capital Trust I (trust preferred at A3), to negative from stable.

At the same time, Moody's said it affirmed the ratings of Astoria Savings & Loan Association (deposits at A1) and maintained the stable outlook on that entity.

Moody's said the outlook changes on Astoria Financial Corp. and Astoria Capital Trust I reflect the view that Astoria Financial's share buybacks have weakened the credit profile of the holding company.

Furthermore, continuation of such buybacks in excess of an amount needed to maintain adequate capital ratios would increase the credit risk being assumed by holders of debt issued by Astoria Financial and the trust preferred securities issued by Astoria Capital Trust I, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.