The Newly Lowered Credit Ratings of 10 U.S. Banks

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Frustrated businessman or bank lender
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First the U.S. gets its credit rating downgraded, and now a bunch of banks just did.

It’s a different major credit rating agency that downgraded the banks — Moody’s, not Fitch. But it’s still bad news, especially after the bank failures earlier this year.

Moody’s said this week that it lowered the credit ratings of 10 small and midsized banks that are facing growing financial risk and strained profitability. And it put several bigger banks on notice, although it hasn’t decided to downgrade them yet.

When a bank’s credit rating drops, it can lose access to some loans and becomes less willing to lend money itself. Nervous consumers may also be less likely to bank there and take their deposits elsewhere, which is what caused Silicon Valley Bank to collapse in March.

Following are the banks that were put on notice and those with a newly diminished credit rating.

Bigger banks put on notice

Truist Bank
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The larger financial institutions that Moody’s put under review for potential downgrading of their credit ratings include:

  • Bank of New York Mellon
  • Northern Trust
  • State Street
  • Cullen/Frost
  • U.S. Bancorp
  • Truist Financial

Up next are the newly downgraded ratings of, and the outlooks for, the smaller institutions on which Moody’s took action.

Commerce Bank

Commerce Bank
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Year this financial institution was established: 1984

Headquartered in: Kansas City, Missouri

Number of locations: 164 across seven U.S. states

Moody’s rating action: Downgraded long-term issuer to A3 from A2

Moody’s outlook: Stable

BOK Financial

BOK Financial Bank, BOKF
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Year this financial institution was established: 1910

Headquartered in: Tulsa, Oklahoma

Number of locations: 117 across eight U.S. states

Moody’s rating action: Downgraded long-term issuer to Baa1 from A3

Moody’s outlook: Stable

M&T Bank

M&T Bank
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Year this financial institution was established: 1856

Headquartered in: Buffalo, New York

Number of locations: 1,057 across 15 U.S. states and three foreign locations

Moody’s rating action: Downgraded senior unsecured to Baa1

Moody’s outlook: Stable

Old National Bank

Old National Bank
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Year this financial institution was established: 1907

Headquartered in: Evansville, Indiana

Number of locations: 271 across seven U.S. states

Moody’s rating action: Downgraded senior unsecured to Baa1 from A3

Moody’s outlook: Negative

Prosperity Bank

Prosperity Bank
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Year this financial institution was established: 1949

Headquartered in: El Campo, Texas

Number of locations: 325 across two U.S. states

Moody’s rating action: Downgraded long-term deposits to A1 from Aa3

Moody’s outlook: Stable

Amarillo National Bank

Amarillo, Texas, road sign
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Year this financial institution was established: 1892

Headquartered in: Amarillo, Texas

Number of locations: 33 across one U.S. state

Moody’s rating action: Downgraded issuer to Baa2 from Baa1

Moody’s outlook: Stable

Webster Bank

Webster Bank
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Year this financial institution was established: 1870

Headquartered in: Stamford, Connecticut

Number of locations: 199 across four U.S. states and one foreign location

Moody’s rating action: Downgraded long-term issuer to Baa2 from Baa1

Moody’s outlook: Stable

Fulton Bank

Fulton Bank
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Year this financial institution was established: 1882

Headquartered in: Lancaster, Pennsylvania

Number of locations: 214 across five U.S. states

Moody’s rating action: Downgraded long-term issuer to Baa2 from Baa1

Moody’s outlook: Negative

Pinnacle Bank

Pinnacle Bank
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Year this financial institution was established: 1934

Headquartered in: Elberton, Georgia

Number of locations: 25 across one U.S. state

Moody’s rating action: Downgraded long-term issuer to Baa2 from Baa1

Moody’s outlook: Changed to negative

Associated Bank

Associated Bank
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Year this financial institution was established: 1874

Headquartered in: Green Bay, Wisconsin

Number of locations: 206 across three U.S. states

Moody’s rating action: Downgraded subordinate to Baa3 from Baa2

Moody’s outlook: Stable

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