S&P cuts KeyCorp

S&P Global Ratings said it lowered the long-term ratings on KeyCorp to BBB from BBB+ and those on its KeyBank NA to BBB+ from A-.

“We believe that interest rate risk management amid higher-for-longer rates will constrain profitability at KeyCorp more than at large regional bank peers. In addition, the bank's capital ratios–including its tier 1 risk-based capital ratio inclusive of unrealized losses on available-for-sale securities–are at the low end of the peer average,” S&P said in a press release.

The agency said it sees Key’s net interest income will continue to face challenges at least through the end of 2024.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.