Moody’s downgrades Signature Bank to junk, places six U.S. banks under review

Signature Bank headquarter, in New York

(Reuters) – Ratings agency Moody’s on Monday downgraded the debt ratings of collapsed New York-based Signature Bank deep into junk territory and placed the ratings of six other U.S. banks under review for a downgrade.

Moody’s, which rated Signature Bank’s subordinate debt ‘C’, said it was also withdrawing future ratings for the collapsed bank.

The banks placed under review for downgrade are First Republic Bank, Zions Bancorporation, Western Alliance Bancorp, Comerica Inc, UMB Financial Corp and Intrust Financial Corporation, Moody’s said.

State regulators closed Signature Bank on Sunday, the third largest failure in U.S. banking history, two days after authorities shuttered Silicon Valley Bank in a collapse that stranded billions in deposits.

(Reporting by Nilutpal Timsina in Bengaluru; Editing by Dhanya Ann Thoppil)

Reuters

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