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Banks are facing huge credit losses as their customers suffer through the coronavirus pandemic, S&P warns

May 5, 2020

S&P Global Ratings revised its outlook on the ratings of 13 U.S. banks to negative from stable and said the coronavirus pandemic will hit hardest those lenders that are most exposed to industries such as commercial real estate and consumer lending that are already being slammed by virus-driven stress.

Even with the unprecedented measures being taken by the federal government and Federal Reserve, bank asset quality, net interest margins and earnings are coming under massive pressure and banks are facing credit losses and capital declines if the crisis lasts a long time and the recovery isn’t strong enough, S&P credit analysts wrote in a note.

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