Moody’s It reduced its rating on the entire US banking system from stable to negative, assuring that its operating environment “deteriorates rapidly.”
The decision was made after the withdrawal of deposits in Silvergate Bank, Silicon Valley Bank (SVB) and Signature Bank (SNY), in addition to the bankruptcy of the latter two.
The risk rating agency highlighted the extraordinary measures to support the affected banks, which will mitigate borrowing costs for the sector.
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Recall that the United States Federal Reserve (Fed) established a mechanism to guarantee that institutions affected by liquidity problems had access to cash.
On Monday, it also downgraded the long-term credit ratings of First Republic Bank, Intrust Financial, UMB, Zions Bancorp, Western Alliance and Comerica.
Finally, Moody’s estimates that some banks may be more sensitive to competition despite reducing their outlook on the US banking system.
Source: Larepublica
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