Shares of US regional banks rallied in pre-market trading on Tuesday after suffering double-digit losses in recent days in the fallout of the Silicon Valley Bank (SVB) collapse.
First Republic Bank had added 50%, Western Alliance Bancorporation was up 40%, and PacWest Bancorp had gained 45% before the opening bell in New York.
Comerica (NYSE:CMA) Inc, Fifth Third Bancorp (NASDAQ:FITB), KeyCorp (NYSE:KEY), and Truist Financial Corp had also risen between 10% and 20%.
This comes as ratings agency Moody’s downgraded the debt rating of collapsed New York-based Signature Bank, which was shuttered by state regulators on Sunday, two days after the collapse of SVB.
The agency awarded it a subordinate debt ‘C’ and stated that it was withdrawing future ratings.
Six other regional banks were placed under review for downgrade: First Republic Bank, Zions Bancorporation, Western Alliance Bancorp, Comerica (NYSE:CMA) Inc, UMB Financial Corp, and Intrust Financial Corp.
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