Moody’s Investor Service, one of three major rating entities, has downgraded the U.S. banking system from “stable” to “negative.” Following the most significant bank failure since the 2008 financial crisis, Moody’s explained the downgrade was “to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY.” Moody’s also issued warnings for institutions “with substantial unrealized securities losses and with non-retail and uninsured US depositors.” They are monitoring INTRUST Financial, Western Alliance, Comerica, Zions Bancorp, and First Republic for potential downgrades.
