S&P Downgrades Multiple U.S. Banks on Funding and Liquidity

S&P Global slashed credit ratings for several U.S. banks due to funding risks and reduced profitability, following a similar move by Moody’s. Banks like Associated Banc-Corp and Valley National Bancorp face challenges from rising interest rates and significant deposit outflows. The sector’s confidence was shaken by the collapse of Silicon Valley Bank and Signature Bank, leading to a run on deposits at a host of regional banks despite emergency interventions.