Moody’s reviews forecasts and ratings of several US banks. The credit crisis is not over
Rising financing costs, potential weaknesses in controlled capital, and heightened risks associated with commercial real estate lending amid weakening demand for office space are factors that prompted Moody's to lower the credit rating of 10 small and medium-sized US banks and to signal, in a series of notes, the possibility of downgrading the main credit institutions.
"Collectively, these three developments have lowered the credit profile of a number of US banks, though not all to the same extent," the rating agency wrote in some assessments.
Firms that have experienced rating cuts include M&T Bank Corp., Webster Financial Corp., BOK Financial Corp., Old National Bancorp, Pinnacle Financial Partners Inc., and Fulton Financial Corp.
Moody's also adopted a "negative" outlook for 11 lenders, including PNC Financial Services Group, Capital One Financial Corp., Citizens Financial Group Inc., Fifth Third Bancorp, Regions Financial Corp., Ally Financial Inc., Bank OZK and Huntington Bancshares Inc.
The S&P Regional Bank Index fell about 3% in early market hours, before improving slightly
While Washington (and Wall Street) have gone to great lengths to restore confidence, Moody's has warned that banks with large unrealized losses that aren't included in their regulatory capital ratios may still be susceptible to sudden losses in market or consumer confidence. in a context of high interest rates.
Beyond the capital no bank is safe if the economy does not grow, or presents problems. High interest weakens the holdings of public securities in banks' balance sheets and makes existing mortgages more uncertain, due to the increase in installments. The US banking system is still not safe, all after an increase in withdrawals in recent months .
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Moody's article revises forecasts and ratings of several US banks. The credit crisis is not over comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/moodys-rivede-previsioni-e-rating-di-diverse-banche-usa-la-crisi-del-credito-non-e-finita/ on Tue, 08 Aug 2023 16:12:25 +0000.