S&P Slashes Ratings Of 5 US Regional Banks Facing Growing Challenges
Portfolio Pulse from Piero Cingari
S&P Global Ratings has downgraded the ratings of five US regional banks, namely Associated Banc-Corp, Comerica Inc., KeyCorp, UMB Financial Corp., and Valley National Bancorp, citing challenges in the current environment. The Federal Reserve's monetary policy is straining the funding, liquidity, and revenue of many US banks. River City Bank and S&T Bancorp Inc. have had their outlooks revised to negative. The SPDR S&P Regional Banking ETF has lost nearly 9% since the start of August and 25% year to date.
August 22, 2023 | 12:50 pm
News sentiment analysis
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NEGATIVE IMPACT
Associated Banc-Corp's rating has been downgraded by S&P Global Ratings.
The downgrade by S&P Global Ratings could negatively impact investor sentiment and potentially lead to a decrease in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Comerica Inc.'s rating has been downgraded by S&P Global Ratings.
The downgrade by S&P Global Ratings could negatively impact investor sentiment and potentially lead to a decrease in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
KeyCorp's rating has been downgraded by S&P Global Ratings.
The downgrade by S&P Global Ratings could negatively impact investor sentiment and potentially lead to a decrease in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The SPDR S&P Regional Banking ETF has lost nearly 9% since the start of August and 25% year to date.
The performance of the ETF reflects the challenges faced by the regional banking sector, which could continue to put downward pressure on its price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
UMB Financial Corp.'s rating has been downgraded by S&P Global Ratings.
The downgrade by S&P Global Ratings could negatively impact investor sentiment and potentially lead to a decrease in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Valley National Bancorp's rating has been downgraded by S&P Global Ratings.
The downgrade by S&P Global Ratings could negatively impact investor sentiment and potentially lead to a decrease in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100