Moody S: Moody’s downgrades 10 US banks, warns of possible cuts to others

Moody’s cut the ratings of 10 US banks by one notch and placed some banking giants on review for potential downgrades. The agency also changed its outlook to negative for several major lenders. Overall, it changed the assessments for 27 banks in the sector.
The downgraded banks include M&T Bank, Pinnacle Financial Partners, Prosperity Bank and BOK Financial Corp.

The banks placed on review for downgrade include BNY Mellon , US Bancorp, State Street and Truist Financial.
“Many banks’ Q2 results showed growing profitability pressures that will reduce their ability to generate internal capital,” Moody’s wrote in a note.
“This comes as a mild recession looms,” and banks contend with greater risks from interest rates and managing their assets and liabilities, the ratings agency said.
The collapse of Silicon Valley Bank and Signature Bank earlier this year sparked a crisis of confidence in the US banking sector, leading to a run on deposits at a host of regional banks despite authorities launching emergency measures to shore up confidence.
Moody’s changed its outlook to negative from stable for Capital One, Citizens Financial and Fifth Third Bancorp, among others.
The ratings agency also affirmed the ratings of PNC Financial Services Group, Citizens, and Huntington Bancshares alongside other banks.