Credit ratings agency Moody's (MCO) said it sees limited risks stemming from the recent global banking crisis that saw several high-profile lenders fail in the U.S. and Europe.
Specifically, Moody’s said it expects risks to the sovereign credit profile of the U.S. to be limited from the recent turmoil in that country's banking sector.
The collapse of Silicon Valley Bank and Signature Bank sparked a crisis of confidence in U.S. lenders, leading to a run on deposits at a host of regional banks and emergency measures to reaffirm consumer and investor confidence.
However, the ratings agency said it does not “expect significant direct fiscal costs for the sovereign from the current banking sector stress.”
Earlier in March, Moody's lowered its outlook on the U.S. banking industry to “negative” from “stable.”
Moody’s stock is down 12% in the last year and trading at $299.55 U.S. per share.
