{"id":74465,"date":"2023-02-22T10:55:41","date_gmt":"2023-02-22T08:55:41","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=74465"},"modified":"2025-09-09T20:17:10","modified_gmt":"2025-09-09T17:17:10","slug":"moodys-downgrades-silvergate-bank-rating","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/moodys-downgrades-silvergate-bank-rating\/","title":{"rendered":"Moody\u2019s downgrades Silvergate Bank rating"},"content":{"rendered":"

Moody\u2019s downgraded Silvergate Bank\u2019s rating from ‘Ba3’ to ‘B2’ following a reduction in the baseline credit assessment of the financial institution. This is reported by The Block<\/a>.<\/p>\n

Experts attributed the decision to a material decline in capital after a loss of $1.05 billion for the fourth quarter of 2022.<\/p>\n

In the latest reporting period, the bank faced an outflow of deposits and took a number of steps to maintain liquidity. The company initially resorted to wholesale funding, and then to selling debt securities.<\/p>\n

The deteriorating operating environment was underscored by the collapse of FTX, which had been a client of the bank.<\/p>\n

In November, Silvergate said that on its trading platform less than 10% of its deposits were placed. The bank also disclosed the volume of client deposits on accounts going through the BlockFi platform\u2019s bankruptcy proceedings \u2014 they did not exceed $20 million.<\/p>\n

\n

“Even with a staff reduction of about 40%, given the substantial decline in crypto firms\u2019 deposits, we expect profitability to be seriously undermined in the coming quarters,” Moody\u2019s says in the report.<\/p>\n<\/blockquote>\n

Analysts note that Silvergate remains well capitalised. The situation could be altered by elevated regulatory and legal risks, as well as limited profitability.<\/p>\n

The company is also facing liquidity and funding-access challenges as it seeks to reduce dependence on Federal Home Loan Banks, analysts noted.<\/p>\n

In February, Citadel Securities and Susquehanna Advisors Group acquired, respectively, 7.5% and 5.5% stakes in Silvergate’s equity.<\/p>\n

Bloomberg previously reported that the U.S. Department of Justice’s fraud section is investigating Silvergate’s deals with the cryptocurrency exchange FTX and the related hedge fund Alameda Research.<\/p>\n","protected":false},"excerpt":{"rendered":"

Moody\u2019s downgraded Silvergate Bank\u2019s rating from ‘Ba3’ to ‘B2’ following a reduction in the baseline credit assessment of the financial institution. The Block reports.<\/p>\n","protected":false},"author":1,"featured_media":74466,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1825,1683,1211],"class_list":["post-74465","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-moodys","tag-silvergate-bank","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"27","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=74465"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74465\/revisions"}],"predecessor-version":[{"id":74467,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74465\/revisions\/74467"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/74466"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=74465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=74465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=74465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}