Moody’s downgraded Silvergate with a negative outlook

It is reported that after the independent benchmark credit rating of Silvergate Capital and its bank subsidiary Silvergate Bank was lowered from ba3 to b2, Moody’s downgraded the bank’s rating. Silvergate Capital’s long-term issuer rating was downgraded from B1 to B3, and the outlook remained negative. Moody’s said in a report that although the company has laid off about 40% of its staff, we expect that the profitability will be seriously challenged in the next few quarters in view of the sharp decline in the deposits of companies centered on cryptocurrencies.

Interpretation of this information:

Moody’s has downgraded the credit rating of Silvergate Capital and its bank subsidiary Silvergate Bank. Silvergate Capital’s long-term issuer rating was downgraded from B1 to B3, and the outlook remained negative. This downgrade came after an independent benchmark credit rating was lowered from ba3 to b2. Moody’s report mentioned that the company had laid off about 40% of its staff, but still, the profitability is expected to be seriously challenged in the next few quarters due to the sharp decline in deposits of crypto-centered companies.

The message highlights the declining financial situation of Silvergate Capital and its subsidiary Silvergate Bank. The companies’ credit rating was downgraded by Moody’s, indicating a decrease in their ability to meet financial obligations. Moody’s report suggests that the reason behind the downgrade is the sharp decline in deposits of companies dealing with cryptocurrencies. Despite laying off 40% of their staff, the profitability of the company is expected to be negatively impacted in the next few quarters. Overall, the message indicates the challenges that crypto-centered companies are facing in the current financial climate.