A Moody's sign is displayed on 7 World Trade Center, the company's corporate headquarters in New York - Reuters/Brendan McDermid
CAIRO - 15 March 2023: Moody's Rating Agency downgraded its outlook for the US banking system to a "negative" outlook from stable, citing a rapidly deteriorating operating environment.
The agency explained that it took this decision in light of the fall of three banks, which prompted regulators to intervene on Sunday, with a plan to rescue depositors and other institutions affected by the crisis.
The Federal Reserve, the US Treasury and the FDIC announced a number of measures late Sunday to support depositors of the signature bank and silicon valley bank.
The agency said in the issued report that it had revised its expectations for the US banking system to reflect the rapid deterioration in the operating environment in the wake of the crowding out of Silicon Valley Bank and Silvergate Bank.
In their sector-wide downgrades, the rating agency noted the extraordinary measures taken to support the sector, but also noted that other banks with unrealized losses or uninsured depositors remained at risk.