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Moody's cuts 10 U.S. banks
Moody's Investors Service said it downgraded the ratings of 10 large U.S. regional banks after reducing its government support assumptions for these entities.
The affected entities, whose ratings were placed on review for possible downgrade in July, had benefited from support assumptions since 2009, Moody's said.
BB&T Corp.'s bank deposits rating was downgraded to Aa3 from Aa2. Capital One Financial Corp.'s bank deposits rating was downgraded to A3 from A2. Fifth Third Bancorp's bank deposits rating was downgraded to A3 from A2. KeyCorp's bank deposits rating was downgraded to A3 from A2. PNC Financial Services Group, Inc.'s bank deposits rating was downgraded to A2 from A1. Popular, Inc.'s bank deposits rating was downgraded to Baa3 from Baa2. Regions Financial Corp.'s bank deposits rating was downgraded to Baa3 from Baa1. SunTrust Banks, Inc.'s bank deposits rating was downgraded to A3 from A2. U.S. Bancorp's bank deposits rating was downgraded to Aa2 from Aa1 and Zions Bancorporation's bank deposits rating was downgraded to Ba3 from Ba2.
As a result of the reduced support assumptions, the outlook on the subsidiaries of American Express Co. was changed to negative from stable.
These issuers' guaranteed debt obligations issued under the FDIC's TLGP program were unaffected by these downgrades and remain at Aaa, the agency said.
The downgrades reflect a view that the likelihood of government support for these 10 institutions is lower now that the U.S. banking system has moved beyond the depths of the financial crisis, Moody's said.
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