Western Alliance Bancorp faces debt downgrade risk and market challenges.
Credit-rating agency Fitch Ratings has placed Western Alliance Bancorp's BBB-plus long-term-issuer default rating on review for a possible downgrade, making it the latest regional bank to face such an action in the wake of the failure of Silicon Valley Bank. The BBB-plus rating is three notches above junk. The stock has lost more than half its value in the month to date and hit a three-year low on Monday. Fitch is now considering the assignment of a negative or stable outlook, depending on market conditions and the impact on the bank’s deposit franchise, long-term earning power, and capitalization.