Rating agency Moody's has downgraded the credit ratings of several US banks, warning that several other giant banks are also under its watch.
Among the affected banks are M&T Bank, Pinnacle Financial Partners, Prosperity Bank and BOK Financial Group.
While the banks that are under observation or being reviewed for downgrading are BNY Mellon, US Bancorp, State Street and Truist Financial.
Moody's said in its note that most banks' second-quarter results showed growing pressure on profits, which could reduce their ability to generate internal capital.
He added that this situation occurs when a mild recession is approaching and banks are facing greater risks than interest rates and managing their assets and liabilities.
This is reminiscent of the collapse of Silicon Valley Bank and Signature Bank earlier this year which has shaken confidence in the US banking sector.
Meanwhile, Moody's also lowered its outlook on Capital One, Citizens Financial and Fifth Third Bancorp to negative from stable.
