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The international rating agency "Moody's" lowered the outlook for the entire US banking system from "stable" to "negative", referring to a "rapidly deteriorating operating environment", reports BTA. 

Moody's, one of the big three rating agencies, said it made the decision in light of the failures of key banks that prompted regulators to step in on Sunday with an emergency plan to rescue depositors and other institutions hit by the crisis.

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"We changed the outlook on the US banking system from 'stable' to 'negative' to reflect the rapid deterioration of the operating environment following the massive withdrawal of deposits by Silicon Valley Bank (SVB), Silvergate Bank Bank) and "Signature Bank" (Signature Bank - SNY) and after the bankruptcies of SVB and "Signature", according to Moody's announcement.

Late yesterday, the rating agency warned that it was downgrading or under review for downgrades on seven separate institutions.

These steps are important as they can affect credit ratings and thus the cost of credit for the sector.

In downgrading the entire sector, Moody's noted the extraordinary actions taken by US regulators to strengthen the affected banks.

However, the agency said there is still a danger that other financial institutions with unrealized losses or uninsured depositors could be put at risk.

The Federal Reserve Board created a mechanism to ensure that institutions affected by liquidity problems would have access to cash.

The Treasury backed the $25 billion program and promised that depositors with more than $250,000 in SVB and Signature would have full access to their funds.

However, according to Moody's, concerns remain.

USA

international rating agency Moody's

banking system