Moody’s Slashes Credit Ratings for Multiple Banks, Considers Additional Actions

CBS News reported that 10 small- to mid-sized banks, including M&T Bank, had their credit ratings slashed by Moody’s last week. According to CBS, the actions were taken due to “growing financial risks and strains that could erode [the banks’] profitability.”

The ratings cuts may not stop there. According to CBS, Moody’s indicated it is considering cutting credit ratings for six other banks, including Truist, U.S. Bank and Bank of New York Mellon, noting that banks with large corporate real estate holdings have “rising” asset risks. In addition, CBS reported that PNC, Capital One and Fifth Third are among a group of 11 banks that are now facing negative credit rating outlooks.