NEW YORK -- Moody's Investors Service Inc. assigned a B3 rating to the proposed preferred stock offering of the Dime Savings Bank of New York. "The rating is based on the thrift's improving capital position, as well as its strong franchise in the New York metropolitan area," Moody's said.
However, Moody's said it is concerned about Dime's high level of nonperforming assets. At June 30, Dime's core and risk-based capital ratio were 5.53% and 9.29%, respectively, both above the Office of Thrift Supervision's interim targets. However, under a capital directive from the OTS, Dime must increase its risk-based ratio to 10% by Dec. 31, 1994.