Moody’s has placed the credit ratings of four regional banking companies on review for downgrade, based their portfolio of energy loans, which are under pressure due to low oil prices. ‘We see energy companies defaulting, credit quality slipping, and so as that credit quality deteriorates, that increases probability of default,’ explained Joseph Pucella, VP-Sr. Credit Officer at Moody’s. Moody’s is now reviewing credit at BOK Financial (BOKF), Cullen/Frost Bankers (CFR), Hancock Holding (HBHC), and Texas Capital (TCBI). The outlook for the ratings of two other banks, Comerica (CMA) and Associated (ASBC) was changed to negative. Several of the banks have increased reserves for loan losses. TheStreet's Rhonda Schaffler has details from New York.
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.