Moody's Downgrades US Banks, Signals Potential Cuts Ahead
Originally Published 2 years ago — by Yahoo News
Moody's has downgraded the credit ratings of several small to mid-sized US banks and warned of possible downgrades for some of the nation's largest lenders, citing funding risks and weaker profitability. The agency highlighted growing profitability pressures and a potential decline in asset quality, particularly in commercial real estate portfolios. Moody's also changed its outlook to negative for eleven major lenders. The report comes amid tightening monetary conditions and concerns over a potential recession, as well as tighter credit standards and weaker loan demand reported by US banks in the second quarter.