Danger Sign, S&P Global Downgrades US Banks!

<p>&nbsp;Ratings agency S&amp;P Global also followed Moody's lead by downgrading credit ratings and revising its outlook for several US banks.</p><p><br /></p><p>Associated Banc-Corp and Valley National Bancorp are among the banks affected due to funding risks and a higher reliance on broker deposits.</p><p><br /></p><p>It also downgraded UMB Financial Corp, Comerica Bank and Keycorp following large deposit outflows and higher interest rates.</p><p><br /></p><p>S&amp;P Global in its note said that the sharp rise in interest rates affected the funding and liquidity of most US banks.</p><p><br /></p><p><br /></p><p>He added that deposits held by banks insured by the Federal Deposit Insurance Corp (FDIC) will continue to decline as long as the Federal Reserve (Fed) continues to tighten its policy.</p><p><br /></p><p>In addition, it also downgraded S&amp;T Bank and River City Bank's forecast to negative from stable due to high commercial real estate (CRE) exposure among other factors.</p><p><br /></p><p>Earlier this month, Moody's downgraded 10 banks and put six banking giants, including Bank of New York Mellon, US Bancorp, State Street and Truist Financial on watch for a possible downgrade.</p><p><br /></p><p>After the collapse of Silicon Valley Bank and Signature Bank earlier this year, confidence in the US banking sector continues to falter even as authorities have launched emergency measures to stem the fall.</p>