The Individual rating of Fifth Third Bancorp has been lowered from A/B to B by Fitch Ratings, which cited concerns about the company's exposure in its home equity and commercial mortgage portfolios, among other factors.The rating outlook for Fifth Third has been revised from stable to negative, although its long- and short-term Issuer Default Ratings have been affirmed at AA-minus/F1-plus. The negative rating actions stem from "deteriorating trends in asset quality and expectations for higher credit costs that will continue to pressure earnings," Fitch said. (Individual ratings, assigned only to banks, assess how a bank would be viewed if it could not rely on external support, and are designed to assess a bank's exposure to and management of risk, Fitch says.) The rating agency said there had been "broad-based deterioration" in net chargeoffs and nonperforming assets since March. "While Fitch had anticipated some deterioration given the Midwestern footprint and exposure to residential and construction lending, the unprecedented stress (particularly in Florida) and difficult market conditions exceeded Fitch internal estimates and support Fitch's outlook revision," the rating agency said.
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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
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Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
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McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
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The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
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The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18