Silvergate Capital’s Ratings Cut by Moody’s Amid Crypto Meltdown

Moody’s Investors Service cut its ratings on Silvergate Capital Corp. and its bank subsidiary Silvergate Bank, citing concern about its viability amid the crypto market’s turmoil and a crackdown by federal regulators.

(Bloomberg) — Moody’s Investors Service cut its ratings on Silvergate Capital Corp. and its bank subsidiary Silvergate Bank, citing concern about its viability amid the crypto market’s turmoil and a crackdown by federal regulators.

Silvergate Capital’s long-term issuer rating fell to Ca from B3, with the potential for another cut, Moody’s said in a statement. It cited the March 1 announcement that Silvergate is evaluating its ability to continue as a going concern and that additional losses will hurt regulatory capital ratios, which may leave the company and the bank less than well-capitalized.

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