2/8/2010- Morgan Stanley analysts do not see credit as a material concern for New York Community Bancorp (NYSE:NYB) after meeting with the CEO and CFO of the company.

Analysts Ken Zerbe, John J. Dunn, and Yoana N. Koleva said, "Key topics included whether it could maintain its solid credit quality despite rising NPAs and opportunities for growth, both organic and through acquisitions. NYB is not worried about rising credit losses, despite a four-fold increase in its NPAs over the last year. The reason, per management, is because of its singular focus on lending to the right borrower (experienced owner with multiple properties) and the use of cash flow, rather than collateral, underwriting. We cannot argue that its credit experience has been exceptionally strong, so far."

Morgan Stanley maintains an "equal weight" rating on the company with a $17 price target. It sees fiscal 2010 EPS of $1.24, vs. the consensus estimates of $1.23, and fiscal 2011 EPS of $1.50, vs. the consensus estimates of $1.40.

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