US Bank Shares Drop as Moody’s Cuts Ratings, Warns on Risks

(Bloomberg) -- US bank stocks declined after Moody’s Investors Service lowered its ratings for 10 small and midsize lenders and said it may downgrade major firms including U.S. Bancorp, Bank of New York Mellon Corp., State Street Corp., and Truist Financial Corp. Most Read from BloombergHigher funding costs, potential regulatory capital weaknesses and rising risks tied to commercial real estate are among strains prompting the review, Moody’s said late Monday. “Collectively, these three developments have lowered the credit profile of a number of US banks, though not all banks equally,” the rating company said. Shares declined for firms that had their ratings cut, including M&T Bank Corp., down 4.6%, and Webster Financial Corp., which lost 3.4%. Moody’s also adopted a “negative” outlook for 11 lenders, including PNC Financial Services Group, Capital One Financial Corp. and Citizens Financial Group Inc.