Why Valley National Bancorp (VLY) Shares Are Nosediving

Valley National Bancorp VLY shares are trading lower by 4.53% to $8.54 Tuesday afternoon after S&P lowered its rating on the bank.

S&P Global Ratings is a respected authority in evaluating the creditworthiness of financial institutions. A downgrade in Valley National's credit rating by S&P could indicate increased risk associated with the bank's financial stability and ability to meet its obligations.

A lower credit rating could result in higher borrowing costs for Valley National when raising capital or accessing funding in the financial markets.

Elevated borrowing costs can negatively impact the bank's profitability and financial performance, leading investors to anticipate lower earnings and respond by selling the stock.

What Happened?

S&P Global Ratings has cast a spotlight on the challenges faced by several U.S. regional banks, resulting in a series of downgrades that have reverberated through the financial sector.

According to the renowned rating agency, the Federal Reserve’s tight grip on monetary policy is now putting a strain on the funding, liquidity, and revenue of many U.S. banks. Among the banks affected by the downgrades...Read More

According to data from Benzinga Pro, VLY has a 52-week high of $13.07 and a 52-week low of $6.38.