Moody’s Downgrades 11 Regional Banks, Including Zions, U.S. Bank, Western Alliance

The recent failures of Silicon Valley Bank and Signature brought attention to regional lenders’ weaknesses

Moody’s said recent events ‘have called into question whether some banks’ assumed high stability of deposits, and their operational nature, should be reevaluated.’ Photo: Andrew Kelly/Reuters

Moody’s Investors Service downgraded 11 regional lenders Friday, suggesting higher interest rates and recent bank failures have ushered in greater instability.

The downgrades hit lenders including U.S. Bancorp, with some $682 billion in assets, Zions Bancorp, with $89 billion, and Bank of Hawaii Corp., with $24 billion.

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