S&P downgrades five US banks as rising rates squeeze profits

S&P Global downgraded five regional US banks due to tough lending conditions and higher funding costs from rising interest rates.
The downgrades were attributed to declining deposits, increased dependence on brokered deposits, and risks from exposure to commercial real estate loans.
Analysts warned that the aggressive Fed tightening campaign has led to asset quality deterioration and strains on liquidity and funding.
Bank stocks have so far shrugged off the downgrades, but face ongoing challenges from higher funding costs and risks to borrowers.
S&P joined Moody's in downgrading US banks amidst the most aggressive monetary tightening in decades.