Moody’s views Cullen/Frost negatively

Moody’s Investors Service said it concluded its review of Cullen/Frost Bankers, Inc., confirmed its ratings, including its A3 subordinate regular bond/debenture rating, and changed the outlook to negative.

The negative outlook reflects the bank’s higher level of exposure to commercial real estate for its rating level.

“This rating action concludes the review for downgrade initiated on Aug. 7, 2023, which commenced in order to assess the effectiveness of Cullen/Frost's interest rate risk management policies, CRE exposures, deposit resiliency, and contingent liquidity plans. Moody's ultimately concluded that these risk factors were consistent with Cullen/Frost's current ratings level, but that negative ratings pressure was likely to persist over the outlook horizon,” the agency said in a press release.

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