NEW YORK (AP) Credit ratings agency Standard & Poor's is reviewing whether to cut the ratings of 23 regional and national banks.
The firms were placed on "CreditWatch Negative" on Monday, which means there is a 50 percent chance the ratings will be cut in the next three months. S&P said it expects the results of the reviews by the end of May. The negative watch is tied to an ongoing industrywide review S&P is conducting on the financial services sector, which has been battered for nearly two years by the credit crisis and ongoing recession. Amid the review, S&P will look at potential mounting loan losses and earnings for the financial firms. The ratings agency will also try to determine how loan losses would affect a bank's cash cushion, possibly leading to a costly capital raise. The 23 banks S&P placed on watch were identified in an initial review as likely to underperform compared with their peers amid the weakening credit and economic environment. They will now face a more detailed review.- Loading Comments...
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