Aug 8 (Reuters) - Ratings agency Moody's on Monday downgraded several mid-sized U.S. banks, warning that the credit strength of lenders will likely be tested by funding risks and weaker profits. Moody's also said it may downgrade some of the largest U.S. lenders, in a blow to the industry that regained stability after several bank failures earlier this year. Here's the list of banks and action taken by Moody's: Bank name Rating Action Outlook Rationale Pinnacle Downgraded to Changed to Shows several Financial BAA2 from negative from sources of Partners BAA1 stable strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures Fulton Downgraded to Negative Shows several BAA2 from sources of BAA1 strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures Prosperity Downgraded Stable Shows several Bank long-term sources of deposits to strain on the A1 from AA3 banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures BOK Downgraded to Stable Shows several Financial BAA1 from A3 sources of Corp strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures Webster Downgraded to Stable Shows several BAA2 from sources of BAA1 strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures Associated Downgraded to Stable Shows several Banc-Corp BAA2 from sources of BAA1 strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures Old Downgraded Negative Shows lower National Senior level of Bancorp Unsecured to capitalization A1 from AA3 , elevated exposure to CRE loans and weaker liquidity buffer compared to higher-rated peers Citizens Affirmed Changed to Shows several Financial senior negative from sources of Corp unsecured at stable strain on the BAA1 banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures M&T Bank Downgraded Stable Shows several Corp senior sources of unsecured to strain on the BAA1 banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures Commerce Downgraded Stable Shows several Bank long-term sources of issuer to A3 strain on the from A2 banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures Regions Affirm senior Changed to Shows several Financial unsecured at negative from sources of Corp BAA1 stable strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures Simmons Affirmed at Negative Shows several First BAA2 sources of National strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures Ally Affirmed LT Negative Rating action Financial bank deposits reflects the at A3 bank's strong liquidity and funding profile, its conservative credit culture and track record of good asset quality Below are the U.S. banking giants that Moody's have put under review for potential downgrades. Bank Name Rating Action Outlook Rationale Bank of Review for Reflects New York downgrading ongoing strain Mellon the long-term in the US issuer banking sector, ratings, debt including more ratings, funding counterparty pressures and risk ratings potential regulatory capital weaknesses US Bancorp Review for Reflects its downgrade of low, though all long-term improving, and select level of short-term capitalization, ratings rising deposit costs and increased use of wholesale funding and its sizable holding of fixed-rate assets Truist Review for Changed to Reflects its Financial downgrade of ratings under low, though long-term review from improving, ratings stable level of capitalization along with weaknesses in the asset-liability management State Review for Changed to Reflects the Street downgrade of ratings under strain in the Corp long-term review from US banking ratings stable sector, including more funding pressures and potential regulatory capital weaknesses Northern Long-term Reflects the Trust Corp ratings under strain in the review for US banking downgrade sector, including funding pressures and potential regulatory capital weaknesses (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Arun Koyyur)
Major US banks downgraded by Moody's on worsening outlook
August 08, 2023 at 09:41 am EDT
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