Tony Webster
Based on data from the worldwide rating agency S&P Global Ratings, a number of American banks have had their long-term credit ratings reduced.
KeyCorp, Comerica Inc., Valley National Bancorp, UMB Financial Corp., and Associated Banc-Corp were among the companies impacted by the action.
Furthermore, S&P reduced the outlook on ratings of banks including S&T Bank and River City Bank to negative. Following the change, Zions Bancorp's outlook remained negative.
"Bank funding costs have gone up as a result of depositors moving their money to higher-interest accounts in large quantities. Many banks now have less liquidity as a result of the loss in deposits, and the value of their securities, which account for a sizable percentage of their liquidity, has decreased. Higher rates are placing pressure on borrowers even though many asset quality metrics still appear good," reads S&P’s statement quoted by Bloomberg.
source: bloomberg.com
KeyCorp, Comerica Inc., Valley National Bancorp, UMB Financial Corp., and Associated Banc-Corp were among the companies impacted by the action.
Furthermore, S&P reduced the outlook on ratings of banks including S&T Bank and River City Bank to negative. Following the change, Zions Bancorp's outlook remained negative.
"Bank funding costs have gone up as a result of depositors moving their money to higher-interest accounts in large quantities. Many banks now have less liquidity as a result of the loss in deposits, and the value of their securities, which account for a sizable percentage of their liquidity, has decreased. Higher rates are placing pressure on borrowers even though many asset quality metrics still appear good," reads S&P’s statement quoted by Bloomberg.
source: bloomberg.com
