DBRS revies KeyCorp trend to negative

DBRS said it changed its trend for KeyCorp to negative from stable and confirmed its ratings, including the company’s long-term issuer rating of A.

“The negative trend considers the increasingly challenging operating environment, including a more costly and competitive funding environment, and the expectation that funding costs and asset quality metrics will likely worsen from their current levels, pressuring earnings. However, previous steps KEY has taken to de-risk the loan portfolio may help mitigate some expected asset quality challenges. Additionally, unrealized losses have weakened the company’s tangible capital position to the low end of peers,” DBRS said in a press release.

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