2023-08-08 06:00:00
Moody’s may downgrade the credit ratings of six major U.S. banks, including US Bancorp, State Street and BNY Mellon Inc.
Updated August 8, 2023 at 14:00 CST
Moody’s Investors Services may downgrade the credit ratings of six of the largest U.S. banks, including US Bancorp (USB), State Street Co. (STT ) and Bank of New York Mellon Inc. ( Bank of New York Mellon Co., BK). The credit rating agency has downgraded the debt ratings of several small and mid-sized lenders as part of a series of rating actions it took on a number of U.S. lenders on Monday night.
The U.S. banking sector, which was hit by the collapse of institutions such as Silicon Valley Bank in March, “continues to face interest rate and (asset and liability management) risks, with implications for liquidity and capital,” the credit rating agency said.
In addition to US Bancorp (USB), State Street and BNY Mellon, Northern Trust…
Moody’s Investors Services may downgrade the credit ratings of six of the largest U.S. banks, including US Bancorp (USB), State Street Co. (STT ) and Bank of New York Mellon Inc. ( Bank of New York Mellon Co., BK). The credit rating agency has downgraded the debt ratings of several small and mid-sized lenders as part of a series of rating actions it took on a number of U.S. lenders on Monday night.
The U.S. banking sector, which was hit by the collapse of institutions such as Silicon Valley Bank in March, “continues to face interest rate and (asset and liability management) risks, with implications for liquidity and capital,” the credit rating agency said.
In addition to US Bancorp (USB), State Street and BNY Mellon, Northern Trust Corp. (NTRS), Cullen/Frost Bankers Inc. (CFR) and Truist Financial (TFC) are also under review for downgrades.
Moody’s said that “many banks’ fiscal second-quarter results point to growing pressure on profitability, which will weaken their ability to generate internal capital” as “a mild recession looms and asset quality appears set to decline”, especially is the commercial real estate portfolio of some banks.
Smaller lenders whose credit ratings were downgraded included Commerce Bancshares Inc. (CBSH) and BOK Financial Corp (BOKF).
Moody’s also issued a negative outlook for 11 lenders, including Ally Financial Inc. (ALLY) and Capital One Financial Corp. (COF).
(This article is translated from MarketWatch. MarketWatch is operated by Dow Jones, the parent company of The Wall Street Journal, but MarketWatch is independent of Dow Jones Newswires and The Wall Street Journal.)
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