Moody's downgrades several regional US banks

Six major institutions put on review

Moody’s cut the credit ratings of ten small to mid-sized banks in the US yesterday (7 August), due to profitability pressures over the second quarter of 2023.

These include Allfirst Preferred Assets and Capital trusts, Frist Maryland Capital I and II, M&T Bank Corporation, Manufacturers and Traders Trust Company, People's United Banks and People's United Financial, Wilmington Trust Company and Wilmington Trust, National Association. Moody's said the downgrades reflected "several sources of strain on the US banking sector", including funding pressures, regulatory capital weaknesses and rising risks associated with commercial real estate exposures. US loses Fitch AAA rating following debt ceiling turmoil The decline in the stability of the...