Moody's Issues Warning of Potential Credit Rating Downgrade for 6 Major US Banks
🏦 Moody's Issues Warning of Potential Credit Rating Downgrade for 6 Major US Banks.
Credit ratings agency Moody's has placed the credit ratings of six major US banks, including Bank of New York Mellon, State Street, and Northern Trust, under review for a possible downgrade. The warning is attributed to the "ongoing strain" in the US banking sector, with increased funding pressures and potential weaknesses in capital requirements. A potential downgrade could lead to higher funding costs for the banks. The US stock market reacted negatively to the news, with the Dow falling over 350 points. Moody's also downgraded 10 smaller US banks, citing rising risks associated with commercial real estate exposures as a contributing factor.
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