According to Odaily, Moody's has initiated a potential downgrade review of ratings for six regional banks in the United States due to their significant exposure to commercial real estate (CRE) loans. The banks under review include First Merchants Corp., F.N.B. Corp., Fulton Financial Corp., Old National Bancorp, Peapack-Gladstone Financial Corp., and Wafd.
Moody's stated that these banks are facing substantial asset quality and profitability pressures due to the high concentration of their commercial real estate loans. Long-term high interest rates have further intensified these pressures. These factors have heightened existing risks, particularly during periods of economic downturn.