The ratings agency Moody's on Monday downgraded the debt ratings of collapsed New York-based Signature Bank into the junk territory, and added that it was also withdrawing future ratings for the bank. The agency has rated Signature Bank's debt 'C'.

Moody has also placed the ratings of six other US banks — First Republic Bank, Zions Bancorporation, Western Alliance Bancorp, Comerica Inc, UMB Financial Corp and Intrust Financial Corporation — under review for a downgrade.

The Signature Bank was closed by the New York state financial regulators on Sunday, March 12. Signature Bank came under the spotlight with the collapse of the FTX crypto exchange late last year. FTX had accounts with Signature Bank.

Also Read: Sleepless and Reflective: Founders and investors draw lessons from Silicon Valley Bank collapse

The collapse of the Signature Bank came days after the The California Department of Financial Protection and Innovation issued the closure order for the Silicon Valley Bank and named the FDIC as the receiver, with the responsibility of safeguarding insured deposits.

Another bank hit by FTX was the Silvergate Capital Corp. The crypto lender said last week it was closing its doors, just days before Silicon Valley Bank’s seizure.

Also Read: SVB collapse | Will there be an impact on Fed's decision, economists evaluate

First Published:Mar 14, 2023 1:22 PM IST