S&P Global Ratings downgrades several US banks citing higher rates, deposit moves

Having witnessed a slew of credit rating downgrade from Moody’s in early August, the S&P Global Ratings announced another shock to the US banks late Monday.

Bloomberg News conveyed the rating giant’s downgrading of several US banks while highlighting the negative impacts of the higher rates and a decline in deposits. In doing so, the S&P Global Ratings also cited a mix of pressures making life “tough” for lenders.

“S&P lowered grades one notch for KeyCorp, Comerica Inc., Valley National Bancorp, UMB Financial Corp. and Associated Banc-Corp,” said Bloomberg.

Market reaction

The news weighs on the market sentiment and the S&P500 Futures, down 0.20% intraday by the press time. The same propels the US Treasury bond yields toward a fresh high since November 2007, to 4.36% at the latest.

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