Moody’s rates Signature preferreds Ba1

Moody’s Investors Service said it assigned a Ba1(hyb) rating to Signature Bank’s non-cumulative perpetual preferred stock.

The agency based the rating on Signature’s baa1 stand-alone baseline credit assessment and the shares’ deferral features and follows Moody’s notching practices for U.S. regional banks resulting from the application of its advanced loss-given-failure analysis, Moody’s said.

The agency affirmed Signature’s ratings, including its long-term issuer rating of Baa2.

Moody’s changed the outlook to negative from stable. The outlook reflects the downside pressure to Signature’s asset quality, capitalization and profitability that could arise from its continued above peer-level loan growth as well as risks posed by the bank’s high commercial real estate concentration in the New York City area.

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