A Fitch Ratings analyst recently expressed concern that the financial sector is getting very close to another turmoil, and that as a result, dozens of U.S. banks, including major players like JPMorgan Chase, might face sweeping rating downgrades.
In June, the ratings agency lowered its assessment of the industry’s health, a move that analyst Chris Wolfe notes went unnoticed because it did not result in bank downgrades.
Wolfe told CNBC on Tuesday that Fitch would have to review its ratings on each of the more than 70 U.S. banks it covers if the industry’s score were to drop by another point, from AA- to A+.
Last week, Moody’s downgraded 10 small and midsized banks and warned that another 17 lenders, including larger institutions such as Truist and U.S. Bank, could be next.
