S&P lowers ratings for KeyCorp, Comerica, other banks

S&P Global Ratings said it lowered the long-term ratings on KeyCorp (KEY) to ‘BBB’ from ‘BBB+’ and those on its bank to ‘BBB+’ from ‘A-‘. S&P also lowered grades one notch for Comerica (CMA), Valley National Bancorp (VLY), UMB Financial (UMBF) and Associated Banc-Corp (ASB), stating that the downgrade “reflects S&P Global Ratings’ view that higher interest rates will continue to pressure profitability for longer and to a greater degree at Key than at Category IV bank peers. Specifically, we believe that interest rate risk management amid higher-for-longer rates will constrain profitability at Key more than at large regional bank peers.”