Blow for US banks as Moody's slashes credit ratings of top 10 banks

Posted on August 14, 2023   |  

Moody's downgrades credit ratings of several small and mid-sized U.S. banks, while major Wall Street names face potential review.

Ratings of 10 banks lowered by one notch; Bank of New York Mellon, U.S. Bancorp, and State Street were among those under scrutiny.

Moody's shift outlook to negative for 11 banks, including Capital One, Citizens Financial, and Fifth Third Bancorp.

Smaller lenders like M&T Bank, Pinnacle Financial, BOK Financial, and Webster Financial officially see ratings decline.

Moody's analysts highlight challenges posed by interest rate and asset-liability risks impacting liquidity and capital, as Q2 results show rising pressure and the U.S. recession looms for 2024.