Western Alliance Bancorp stock WAL fell 8% in premarket trades after credit rating agency Fitch Ratings placed the company’s debt and deposit ratings on rating watch negative. Fitch analysts said current market conditions “have created liquidity stresses outside the baseline assumptions.” Fitch said it’s considering the assignment of a negative or stable outlook depending on market conditions and the impact to the bank’s deposit franchise, long-term earning power and capitalization. Fitch noted Western Alliance Bancorp reported cash reserves of $25 billion in a March 13 filing. The company’s cash is equivalent to about 47% of total deposits reported as of Dec. 31. The company also “communicated moderate deposit outflows and insured deposits in excess of 50% of total deposits,” Fitch said. The ratings agency said the Federal Reserve Bank’s Bank Term Funding Program “provides a further liquidity backstop at favorable terms” for Western Alliance Bancorp.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
0
0
