Daily Management Review

S&P downgrades credit ratings of several U.S. banks


S&P reduced long-term credit ratings of a number of US banks.

Tony Webster
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