US regional banks dive as Moody's downgrades

PacWest Bancorp

08/08/2023 15:26

(Updates)
    ** Shares of U.S. regional lenders dive down in early hours
of trading on Tuesday after Moody's downgrades 10 small- and
mid-sized lenders
    ** Moody's also said it may downgrade some of the top
lenders, warning that the sector's credit strength will likely
be tested by funding risks and weaker profitability
    ** The KBW Regional Banking Index fell 3.9%
    ** Regions Financial  RF.N  Citizens Financial  CFG.N ,
Western Alliance Bancorp  WAL.N , PacWest  PACW.O , Comerica
 CMA.N , KeyCorp  KEY.N , PNC Financial  PNC.N , Fifth Third
 FITB.O  and Zions Bancorp  ZION.O  down 2.3% to 4.6%
    ** Moody's also places six giants, including Bank of New
York Mellon  BK.N , US Bancorp  USB.N , State Street  STT.N  and
Truist Financial  TFC.N , on review for potential downgrades
    ** Says elevated commercial real estate (CRE) exposures are
a key risk due to high rates, declines in office demand and low
availability of CRE credit    
    ** KBW Regional Banking Index is down ~12.4% so far this
year

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))