Flagstar Financial's long-term rating has been upgraded to B1, with a positive outlook.

Moody's Ratings has upgraded Flagstar Financial, Inc. (FLG)'s long-term issuer ratings from B2 to B1, including the long-term deposit rating for its primary bank, Flagstar Bank, NA, which was raised from Ba2 to Ba1. This positive trend extends to Flagstar Bancorp, Inc., with its subordinated debt rating increased from B2 to B1. Additionally, New York Community Capital Trust V's supported preferred stock rating improved from B3 (hyb) to B2 (hyb). However, Flagstar's short-term bank deposits and counterparty risk ratings remain confirmed at Not Prime.

The upgrades reflect significant measures taken by Flagstar to enhance risk management and infrastructure last year, leading to substantial improvements in capital and reserve positions. The bank has invested heavily in strengthening its overall risk and compliance framework while making strategic hires in its credit and risk divisions. Flagstar's TCE/RWA ratio improved significantly, indicating a solid financial foundation moving forward.