Post a Free Blog

Submit A Press Release

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Filter by Categories
Action
Animation
ATP Tour (ATP)
Auto Racing
Baseball
Basketball
Boxing
Breaking News
Business
Business
Business Newsletter
Call of Duty (CALLOFDUTY)
Canadian Football League (CFL)
Car
Celebrity
Champions Tour (CHAMP)
Comedy
CONCACAF
Counter Strike Global Offensive (CSGO)
Crime
Dark Comedy
Defense of the Ancients (DOTA)
Documentary and Foreign
Drama
eSports
European Tour (EPGA)
Fashion
FIFA
FIFA Women’s World Cup (WWC)
FIFA World Cup (FIFA)
Fighting
Football
Formula 1 (F1)
Fortnite
Golf
Health
Hockey
Horror
IndyCar Series (INDY)
International Friendly (FRIENDLY)
Kids & Family
League of Legends (LOL)
LPGA
Madden
Major League Baseball (MLB)
Mixed Martial Arts (MMA)
MLS
Movie and Music
Movie Trailers
Music
Mystery
NASCAR Cup Series (NAS)
National Basketball Association (NBA)
National Football League (NFL)
National Hockey League (NHL)
National Women's Soccer (NWSL)
NBA Development League (NBAGL)
NBA2K
NCAA Baseball (NCAABBL)
NCAA Basketball (NCAAB)
NCAA Football (NCAAF)
NCAA Hockey (NCAAH)
Olympic Mens (OLYHKYM)
Other
Other Sports
Overwatch
PGA
Politics
Premier League (PREM)
Romance
Sci-Fi
Science
Soccer
Sports
Sports
Technology
Tennis
Thriller
Truck Series (TRUCK)
True Crime
Ultimate Fighting Championship (UFC)
Uncategorized
US
Valorant
Western
Women’s National Basketball Association (WNBA)
Women’s NCAA Basketball (WNCAAB)
World
World Cup Qualifier (WORLDCUP)
WTA Tour (WTA)
Xfinity (XFT)
XFL
0
-- Advertisement --spot_img
HomeBusinessMoody's cuts U.S. bank ratings, warns of risks, bank shares fall

Moody’s cuts U.S. bank ratings, warns of risks, bank shares fall

Add to Favorite
Added to Favorite
Photo by Chenyu Guan

Moody’s lowered the ratings of 10 regional banks in the U.S. It also put six banks on review. Following the rating cut late Monday, many banks that were affected by the new rating saw a fall in share price. The rating company also projected a negative outlook for 11 financial institutions whose shares also tumbled. Moody’s changed their assessment of a total of 27 banks.

Some of the banks that saw a lower by one rung rating include the following
M&T Bank Corp.
Pinnacle Financial Partners
Commerce Bancshares
Prosperity Bank
BOK Financial Corp and others.

Some of the banks under review for a possible downgrade include
Bank of New York Mellon
Northern Trust
State Street
US Bancorp
Truist Financial
Cullen/Foster Bankers and others.

Some of the banks that have a negative outlook rating include
Capital One
Fifth Third Bancorp
Citizen Financials and others.

Moody’s said that the review was undertaken due to three factors:
higher funding costs
potential regulatory capital weaknesses and
risks associated with commercial real estate.

The rating company said that these were the factors that were responsible for the lowered ratings. However, not all of the banks had been affected equally.

Early in 2023, two major regional banks in the U.S.—Silicon Valley Bank and Signature Bank collapsed after investors made a run-on deposit, although authorities tried to stem the lack of confidence in regional banks. In Europe Credit Suisse was bought over by its rival UBS to prevent its collapse.

In a separate note, Moody’s also clarified the rating saying that rising funding costs and declining income metrics would erode profitability, which is the first buffer against losses. It also noted that asset risk has been rising particularly for small and midsize banks that had large CRE exposures.

The rating agency said that although some banks had cut short the growth of loans, in a bid to have capital reserves, this would also slow the shift in their loan mix towards assets that have high yields.

Celebrity WEB Update— Premier Jewelry designer and manufacturer fashion house ParisJewelry.com has started manufacturing a new custom line of celebrity jewelry designs with 30% Off and Free Shipping. Replenish Your Body- Refilter Your Health with OrganicGreek.com Vitamin Bottles, Vitamins and Herbs. Become a  WebFans  Creator and Influencer.

Subscribe to get Latest News Updates

Latest News

You may like more
more

Cerence Inc. (NASDAQ:CRNC) Faces Financial Challenges Amidst Automotive AI Competition

Cerence Inc. (NASDAQ:CRNC) reported an EPS of -$0.49, missing...

NetApp Inc. (NASDAQ:NTAP) Surpasses Earnings and Revenue Estimates

NetApp Inc. (NASDAQ:NTAP) reported an earnings per share (EPS)...

Agilent Technologies (NYSE:A) Quarterly Earnings Preview

The anticipated EPS of $1.41 represents a 2.2% increase...