Ratings agency Moody’s warned that it was assessing the position of some of the biggest lenders in the country as it cut the credit ratings of seven U.S. banks on Monday.

Ten American banks had their ratings lowered by one notch by Moody’s, which also put several of the biggest banks under examination for possible downgrades. The agency also revised its outlook for a number of significant lenders to negative. In total, it altered the ratings for 27 banks in the industry.

M&T Bank, Pinnacle Financial Partners, Prosperity Bank, and BOK Financial Corp. are among the banks that have been downgraded.

BNY Mellon, US Bancorp, State Street, and Truist Financial are among the institutions that have been put under evaluation for downgrading.

“Many banks’ Q2 results showed growing profitability pressures that will reduce their ability to generate internal capital,” Moody’s wrote in a note.

“This comes as a mild recession looms,” and banks contend with greater risks from interest rates and managing their assets and liabilities, the ratings agency said.

Despite regulators implementing emergency efforts to shore up confidence, the failure of Silicon Valley Bank and Signature Bank earlier this year caused a crisis of confidence in the U.S. banking sector, resulting in a run on deposits at a number of regional banks.

For several companies, including Capital One, Citizens Financial, and Fifth Third Bancorp, Moody’s modified its outlook from stable to negative.

Along with other banks, the ratings of PNC Financial Services Group, Citizens, and Huntington Bancshares were also upheld by the ratings agency.

(Adapted from DeccanHerald.com)

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