Moody’s Investor Service has downgraded credit ratings for ten mid-size banks, including Commerce Bank, which has over ten branches in Wichita and other cities throughout the U.S.
The downgrades follow a banking crisis that began with the collapse of other mid-size banks, Silicon Valley Bank, Signature Bank and First Republic Bank.
The ten banks that were downgraded included Commerce Bancshares, M&T Bank Corporation, Pinnacle Financial Partners and BOK Financial Corporation.
Moody’s also said it was putting six larger banks under review for possible downgrades, including U.S. Bank, Truist Financial, and Bank of New York Mellon.
The Moody’s report said there are growing financial risks and strains that could hurt profitability.
Commerce Bank issued a statement in response to the Moody’s report.
Commerce Bank is very proud to be among the highest rated banks in the country. As Moody’s notes, “The stable outlook reflects Moody’s view that over the next 12-18 months, Commerce’s strong financial performance will continue despite the current challenging operating environment.” At a baseline credit assessment (BCA) of a2, we remain two ratings above the baa1 median US Bank and share this rating with only 10 other banks in the US.
