Moody’s Investors Services could downgrade its credit score scores on six main U.S. banks, together with U.S. Bancorp, State Street Corp., and Bank of New York Mellon Corp., and has downgraded its debt scores on a number of small and mid-sized banks as a part of the credit score scores company’s rash of ranking actions on U.S. banks late Monday.
The U.S. banking business, rattled in March by the collapse of Silicon Valley Bank and others, “continue to contend with interest rate and [asset and liability management] risks with implications for liquidity and capital,” the credit score scores company mentioned.
In addition to U.S. Bancorp
USB,
State Street
STT,
and Bank of New York Mellon
BK,
additionally on evaluate for downgrade had been Northern Trust Corp.
NTRS,
Cullen/Frost Bankers Inc.
CFR,
and Truist Financial
TFC,
“Many banks’ Q2 results showed growing profitability pressures that will reduce their ability to generate internal capital” as a “mild recession looms and asset quality looks set to decline” notably in some banks’ business real-estate portfolio, Moody’s mentioned.
See additionally: Opinion: How a lot ache might business actual property heap on U.S. banks and the economic system? Rather a lot.
“Asset risk is rising, in particular for small and mid-size banks with large CRE exposures,” it mentioned.
Among the smaller banks that had their credit standing downgraded had been Commerce Bancshares Inc.
CBSH,
and BOK Financial Corp
BOKF,
Moody’s additionally slapped detrimental outlooks on 11 lenders, together with Ally Financial Inc.
ALLY,
and Capital One Financial Corp.
COF,
Don’t miss: JPMorgan CEO Jamie Dimon says U.S. ought to have the best credit standing on this planet
Source web site: www.marketwatch.com
