S&P Joins Moody’s in Cutting US Banks Amid ‘Tough’ Climate

Two weeks after Moody’s Investors Service rattled financial stocks by cutting the ratings for a slew of US banks, S&P Global Ratings is downgrading and dimming its outlook for several more — citing a similar mix of pressures making life “tough” for lenders.

S&P said Monday in a statement noting the impact of higher interest rates and deposit moves across the industry.‘Decline in deposits has squeezed liquidity,’ S&P says in note.

Moody’s lowered credit ratings for 10 US banks earlier this month and warned it may downgrade others as part of a sweeping look at mounting pressures on the industry. The KBW Bank Index of major US banks has since slumped almost 7% — heading for its worst monthly performance since the collapse of three regional banks in March sparked a broad selloff.