Moody’s is currently evaluating the possibility of lowering the credit ratings of six regional banks in the United States because of their extensive involvement in commercial real estate (CRE) loans. Moody’s Corporation, a major credit rating agency established in 1909 and known as one of the top three along with Standard & Poor’s (S&P) and Fitch Ratings, specializes in providing credit assessments, research, and risk evaluations. The banks being assessed are First Merchants Corp., F.N.B. Corp., Fulton Financial Corp., Old National Bancorp, Peapack-Gladstone Financial Corp., and Wafd. Moody’s has noted that these banks are facing significant challenges in terms of asset quality and profitability due to their high concentrations of CRE loans, which are further complicated by prolonged periods of high interest rates. These factors increase the existing risks, particularly during economic downturns.
