S&P downgrades multiple US banks citing 'tough' operating conditions

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S&P downgrades multiple US banks citing 'tough' operating conditions
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S&P Global on Monday cut credit ratings and revised its outlook for multiple U.S. banks, following a similar move by Moody's, warning that funding risks and weaker profitability will likely test the sector's credit strength.

A sharp rise in interest rates is weighing on many U.S. banks' funding and liquidity, S&P said in a summarized note, adding that deposits held by Federal Deposit Insurance Corp -insured banks will continue to decline as long as the Federal Reserve is "quantitatively tightening."

The rating agency also downgraded the outlook of S&T Bank and River City Bank to negative from stable on high commercial real estate exposure among other factors.

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