US Regional Banks Challenged by Commercial Property, S&P Says
- Reduced property prices, higher vacancies add to issues
- Cuts in interest rates could help alleviate some stress
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Some US regional lenders could see their asset quality and performance hurt by the stresses in commercial real-estate markets, said S&P Global Ratings on Tuesday as it lowered its outlook on five lenders to negative from stable.
Increases in modified loans and loan maturities “may foreshadow a decline in asset quality and performance,” the ratings provider said in a statement.