Moody's downgrades US banks

Moody’s has downgraded the credit ratings of 10 small and midsize banks in the U.S. The credit rating agency Moody’s has downgraded the credit ratings of 10 small and midsize banks in the U.S. and said it may do the same for several larger banks, including U.S. Bancorp, Bank of New York Mellon Corp., State Street Corp., and Truist Financial Corp. Moody’s cited rising borrowing costs, potential capital constraints due to regulatory action, and increased risks associated with commercial real estate lending as demand for office space weakens. “Collectively, these three developments have lowered the credit profiles of a number of U.S. banks, but not all banks were equally affected,” the agency said in its note. The banks that were downgraded included M&T Bank Corp., Webster Financial Corp., BOK Financial Corp., Old National Bancorp, Pinnacle Financial Partners Inc., and Fulton Financial Corp.