Moody’s cuts outlook on U.S. banking system to negative
Ratings agency Moody’s has changed its outlook on the US banking system to “negative” from “stable” after the collapse of three major banks fueled fears of a contagion.Moody’s Investors Service said it was making the move in light of three key bank failures in recent days that prompted regulators to step in on Sunday with a dramatic rescue plan for depositors and other institutions impacted by the crisis.
In a report, Moody’s says that the operating environment for US banks is “rapidly deteriorating”.
“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY.”
As covered this morning, Moody’s also put six US regional banks on watch for a potential downgrade.Moody’s cuts outlook on US banking system to negative, citing ‘rapidly deteriorating operating environment’.
Stock markets unfazed: still up 2%-3%.
— Euan Rellie (@euanrellie) March 14, 2023
Moody's Investors Service changed its outlook on the US banking system to "negative" from "stable"
Moody's has also placed 6 #banks incl First Republic Bank $FRC, Western Alliance $WAL and Comerica $CMA - @reuters #Moodys #stocks #SVB#signature #ratings
— Global Markets Forum (@ReutersGMF) March 14, 2023
Updated at 11.57 EDT