Moody's may downgrade 6 regional banks in the US

Moody's said at least six U.S. regional banks are at risk of having their debt ratings downgraded. Moody's said at least six U.S. regional banks with significant exposure to commercial real estate loans are at risk of having their debt ratings downgraded. First Merchants, FNB, Fulton Financial, Old National Bancorp, Peapack-Gladstone Financial and WaFd are under review for a ratings downgrade by the ratings provider. Moody's said regional banks with a significant concentration in commercial real estate loans face asset quality and profitability pressures as long-term exposure to high interest rates increases risks. In the low interest rate environment that prevailed prior to the start of the Fed's rate hike cycle, many regional banks elected to establish and maintain meaningful concentrations in commercial real estate, a "volatile asset class," according to Moody's.