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 Financial Partners | Downgraded to BAA2 from BAA1 | Changed to negative from stable | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| Fulton | Downgraded to BAA2 from BAA1 | Negative | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| Prosperity Bank | Downgraded long-term deposits to A1 from AA3 | Stable | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| BOK Financial Corp | Downgraded to BAA1 from A3 | Stable | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| Webster | Downgraded to BAA2 from BAA1 | Stable | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| Associated Banc-Corp | Downgraded to BAA2 from BAA1 | Stable | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| Old National Bancorp | Downgraded Senior Unsecured to A1 from AA3 | Negative | Shows lower level of capitalization, elevated exposure to CRE loans and weaker liquidity buffer compared to higher-rated peers |
| Citizens Financial Corp | Affirmed senior unsecured at BAA1 | Changed to negative from stable | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| M&T Bank Corp | Downgraded senior unsecured to BAA1 | Stable | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| Commerce Bank (CBSH.O) | Downgraded long-term issuer to A3 from A2 | Stable | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| Regions Financial Corp | Affirm senior unsecured at BAA1 | Changed to negative from stable | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| Simmons First National | Affirmed at BAA2 | Negative | Shows several sources of strain on the banking sector from funding pressures, regulatory capital weaknesses and rising risks from CRE exposures |
| Ally Financial | Affirmed LT bank deposits at A3 | Negative | Rating action reflects the 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 New York Mellon | Review for downgrading the long-term issuer ratings, debt ratings, counterparty risk ratings | Reflects ongoing strain in the US banking sector, including more funding pressures and potential regulatory capital weaknesses | |
| US Bancorp (USB.N) | Review for downgrade of all long-term and select short-term ratings | Reflects its low, though improving, level of capitalization, rising deposit costs and increased use of wholesale funding and its sizable holding of fixed-rate assets | |
| Truist Financial | Review for downgrade of long-term ratings | Changed to ratings under review from stable | Reflects its low, though improving, level of capitalization along with weaknesses in the asset-liability management |
| State Street Corp (STT.N) | Review for downgrade of long-term ratings | Changed to ratings under review from stable | Reflects the strain in the US banking sector, including more funding pressures and potential regulatory capital weaknesses |
| Northern Trust Corp (NTRS.O) | Long-term ratings under review for downgrade | Reflects the strain in the US banking sector, including funding pressures and potential regulatory capital weaknesses |
Source: Reuters
