US Banks Under Scrutiny: Moody’s Contemplates Downgrades for Six Institutions

Moody’s is currently reviewing six U.S. regional banks for potential downgrades. Primarily due to their extensive exposure to commercial real estate (CRE) loans. 

Established in 1909, Moody’s Corporation is one of the “Big Three” credit rating agencies, alongside Standard & Poor’s (S&P) and Fitch Ratings, specializing in credit ratings, research, and risk analysis. The banks being assessed include First Merchants Corp., F.N.B. Corp., Fulton Financial Corp., Old National Bancorp, Peapack-Gladstone Financial Corp., and Wafd. Moody’s cites significant asset quality and profitability challenges stemming from their substantial CRE loan concentrations, exacerbated by prolonged high interest rates. These factors magnify the banks’ risks, especially during economic downturns.

Clever Robot News Desk 11^st June 2024