S&P Global Ratings Downgrades Multiple US Banks Amid Challenging Operating Conditions

S&P Global Ratings has followed Moody's Investors Service in downgrading and dimming its outlook for several US banks, citing a challenging environment for lenders. S&P lowered grades for KeyCorp, Comerica Inc., Valley National Bancorp, UMB Financial Corp., and Associated Banc-Corp, while also lowering its outlook for River City Bank and S&T Bank. The rating agency highlighted the impact of higher interest rates and deposit moves on the industry, with many depositors shifting their funds into higher-interest-bearing accounts, increasing banks' funding costs. The decline in deposits has squeezed liquidity for many banks, while the value of their securities has fallen.