When did Moody's downgrade 11 regional banks?

A sign for Moody’s Corp. is shown on Aug. 13, 2010, in New York. The credit rating agency downgraded 11 regional banks with a new report released on April 21, 2023. | Mark Lennihan, Associated Press

Which banks are affected by the downgrades?

Among the banks affected by the downgrades, Associated Banc-Corp (NYSE:ASB), Comerica Inc. (NYSE:CMA), KeyCorp (NYSE:KEY), UMB Financial Corp. (NASDAQ:UMBF), and Valley National Bancorp (NASDAQ:VLY) have all seen their ratings lowered by one notch, with stable outlooks assigned.

Why did S&P Global ratings downgrade Zions Bank?

“The downgrade reflects S&P Global Ratings’ view that higher interest rates will continue to pressure profitability for longer and to a greater degree at Key than at Category IV bank peers,” S&P Global Ratings said. Ratings for Zions Bancorp as well as River City Bank and S&T Bank were also lowered.

Why did S&P downgrade Associated Banc-Corp?

S&P downgraded the ratings of Associated Banc-Corp (ASB.N) and Valley National Bancorp (VLY.O) on funding risks and a higher reliance on brokered deposits. It also downgraded UMB Financial Corp (UMBF.O), Comerica Bank (CMA.N) and Keycorp (KEY.N), citing large deposit outflows and prevailing higher interest rates.