FRC - Moody's cuts Signature Bank debt ratings to junk 6 banks under review

2023-03-14 09:43:11 ET

• Ratings agency Moody's downgraded shuttered Signature Bank's ( NASDAQ: SBNY ) credit ratings into junk territory and withdrew its future ratings, while placing ratings of six other lenders under review for downgrade.
• The banks on review are First Republic Bank ( FRC ), Western Alliance ( WAL ), Intrust Financial, UMB Financial ( UMBF ), Zions Bancorp ( ZION ) and Comerica ( CMA ).
• Moody's cited concerns over the banks' uninsured deposit funding and unrealized losses in their asset portfolios.
• It also warned of First Republic's ( FRC ) share of deposits exceeding the FDIC insurance threshold, make its funding profile more sensitive to large withdrawals.
• The rating action follows the collapse of Silicon Valley Bank, which led to the shut down of Signature Bank ( SBNY ) and a wider selloff in banking stocks on Monday amid contagion fears.
• Earlier, Western Alliance ( WAL ) said it took addition steps to strengthen its liquidity and disclosed that insured deposits exceed 50% of its total deposits .

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