Bank Outlook to Stable by Moody’s 5 Years After Cut

Moody’s Investors Service changed its outlook for the U.S. banking system to stable after keeping it negative since 2008, saying the country’s economy poses less of a threat.

Gross domestic product will grow by 1.5 percent to 2.5 percent through next year, helping lenders avoid losses, the New York-based credit-rating company said today in a report. Banks have raised capital to protect against potential deterioration in the economy, while low interest rates have buoyed the values of their real-estate portfolios, Moody’s said.