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”.
As covered this morning, Moody’s also put six US regional banks on watch for a potential downgrade.
Updated at 11.57 EDT
