Factbox-Major US banks downgraded by Moody’s on worsening outlook

(Reuters) – Ratings agency Moody’s (NYSE:) 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 (NYSE:) 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 (NYSE:) 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