S&P downgrades multiple U.S. banks citing 'tough' operating conditions

S&P Global has downgraded credit ratings and revised outlooks for multiple U.S. banks, citing funding risks and weaker profitability as factors that will test the sector's credit strength.

cnbc.com

Relevant topic timeline:

8/21/2023

Fitch, BRICS, Ukraine: Why US Economic And Political Hegemony Is In Long-Term Decline

Fitch's recent downgrade of US government debt reflects concerns over the country's deteriorating fiscal governance standards and the unlikely prospects of serious fiscal reform, signaling a change in perceptions that may have more damaging effects than the 2011 downgrade by S&P; factors such as broken supply chains, rising inflation, and a shift away from the US dollar as a safe haven currency contribute to a potential US slowdown and impact on global economic power.

8/16/2023

CNBC Daily Open: More trouble ahead for U.S. banks

Major U.S. indexes have fallen due to losses in financial stocks and concerns about China's economy, as Fitch Ratings warns of a potential downgrade for the U.S. banking industry's credit rating and JPMorgan highlights a higher risk of corporate defaults in emerging markets.

8/22/2023

Dow, S&P 500 end down as US interest-rate worries mount, bank shares slip

The Dow and S&P 500 ended slightly lower due to concerns about the Federal Reserve keeping interest rates higher for longer, while the Nasdaq finished barely in the green; the financial sector fell 0.9%, dragged down by an S&P downgrade of credit ratings of regional U.S. lenders, and investors are awaiting clarity on the rate outlook from Fed Chair Jerome Powell.

8/25/2023

UPDATE 1-S&P downgrades Hawaiian Electric to 'B-' as wildfires raise market-access worries

S&P Global Ratings has downgraded Hawaiian Electric Industries and its subsidiaries due to the company's likely inconsistent access to capital markets following the Maui wildfires, which may result in adverse developments regarding its debt service capacity.

9/10/2023

Regional Bank Stocks Face Challenges in 2022 But Avoid Major Crisis

Despite bond rating agencies issuing warnings and downgrades for banks in the US, equity analysts argue that the warnings were inaccurate due to rising bank stock prices and better-than-expected earnings reports. However, the regional banking sector has still experienced a significant decline this year and faces uncertainty regarding the future role of banks in providing credit to the economy. Additionally, the debate about banks revolves around interest rates and the state of real estate, particularly office buildings.

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Posted 8/22/2023, 2:45:00 AM