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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