Thursday, March 12, 2009

Moody's Puts 23 US Regional Banks Financial Strength On Downgrade Review

Despite the market's earlier memo that its profit for Jan and Feb is up, Moody's is doing all it can to spoil the party: the rating agency just dropped a bank rating action neutron bomb. Moody's action is based on the expectation for higher credit losses than previously anticipated and banks ratings most likely to be affected are those with significant commercial real estate exposure, specifically construction and land development.

Banks looking at a one-notch downgrades include:

Astoria Financial, BancWest, B&T, BMW Bank of North America, Capital One Financial Corp., Citizens Republic Bancorp, Inc., First Citizens BancShares, Inc., Fulton Financial Corporation, KeyCorp, M&T Bank Corporation, Pacific Capital Bancorp, PNC Financial Services Group, Inc., South Financial Group, Inc., Susquehanna Bancshares, Inc., Trustmark Corporation, U.S. Bancorp, United Bankshares, Inc.

Banks that will likely see a two notch downgrade include:

Fifth Third Bancorp, Huntington Bancshares Incorporated, SunTrust Banks, Inc., Synovus Financial Corp., UCBH Holdings, Inc., UnionBanCal Corporation, Western Alliance Bancorporation, Wilmington Trust Corporation.

And lastly, banks that will suffer a three notch downgrade include:

BBVAPR Holding Corporation, Colonial BancGroup, Inc., Compass Bancshares, Inc., Zions Bancorporation

And much more fun stuff in the report below... Curious what the total collateral posting at risk is based on this action... Judging by the market today, likely a negative number.
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Anonymous said...

so what's the deal? should i be selling my BAC into this rally? This smells to me like bear rally regardless of what Lewis says.

Tyler Durden said...

well, what started the rally. a planted memo? a -0.1% beat in retail ex gas? lewis' strawman about california foreclosure property sales picking up? S&P up 12% already in 4 days.

Anonymous said...

M2M elimination/modification hype, uptick rule hype, CNBC douchebags pumping?

Anonymous said...

As if none of the bigger banks don't have any commercial loans. If anything, the bigger the bank, the more commercial loans its gonna have.

Let alone the fact this is coming from "Moody's" one of the main players for the reason why we are in this mess in the first place. Their making up fake ratings.

You would be a fool to believe anything Moody says.

JJ Hornblass said...

What did Moody's previously expect? NPF of 0? NOW Moody's thinks credit losses will be higher?!? Check the document. Does it say 2009 or 2008? I hope it is the latter (although I know better).