Moody’s has initiated a review for potential downgrades of six U.S. regional banks due to their considerable exposure to commercial real estate (CRE) loans. Moody’s Corporation, established in 1909 and recognized as one of the “Big Three” credit rating agencies along with Standard & Poor’s (S&P) and Fitch Ratings, specializes in providing credit ratings, research, and risk analysis. The banks under review are First Merchants Corp., F.N.B. Corp., Fulton Financial Corp., Old National Bancorp, Peapack-Gladstone Financial Corp., and Wafd. According to Moody’s, these banks face significant asset quality and profitability pressures due to their substantial CRE loan concentrations, which are further strained by prolonged high interest rates. These factors heighten the existing risks, especially during economic downturns.
6 US Banks Face Moody's Downgrade
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