In a big blow to the US banking system, Moody’s Investors Service cut its view on the entire banking system to negative from stable.
“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,” Moody’s said in a report.
The downgrade came as banking shares in the US and Europe rebounded following earlier losses.
Moody's said some other banks faced risks of customer withdrawals.
Ratings giant Moody's has warned of more pain ahead for the US banking system after a run on deposits led to the collapse of Silicon Valley Bank.