Why Valley National Bancorp (VLY) Shares Are Nosediving
Portfolio Pulse from Henry Khederian
Shares of Valley National Bancorp (NASDAQ:VLY) fell by 4.53% after S&P Global Ratings downgraded its credit rating. The downgrade could lead to higher borrowing costs for the bank, negatively impacting its profitability and financial performance. The Federal Reserve's tight monetary policy is straining the funding, liquidity, and revenue of many U.S. banks, according to S&P.
August 22, 2023 | 5:21 pm
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Valley National Bancorp's stock price fell after its credit rating was downgraded by S&P. This could lead to higher borrowing costs, impacting the bank's profitability and financial performance.
A credit rating downgrade usually indicates increased risk associated with a company's financial stability. This could lead to higher borrowing costs for Valley National Bancorp, which would negatively impact its profitability and financial performance. As a result, investors may sell their shares, leading to a decrease in the stock price.
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