Moody’s acts on U.S. banks

Moody’s Investors Service said it took various actions on U.S. banks based on its updated advanced loss-given failure analysis published on Friday.

Moody's raised certain ratings for Capital One Financial Corp.'s two banking subsidiaries. Capital One Bank (USA), NA's and Capital One, NA's senior unsecured bank note program and subordinate bank note program ratings were upgraded to (P)A3 from (P)Baa1 and their issuer ratings and senior unsecured ratings to A3 from Baa1. The subordinate rating of Capital One Bank (USA) was also boosted to A3 from Baa1.

These ratings were upgraded by a notch, as under Moody's advanced LGF analysis they are now rated in line with the banks' baseline credit assessment, the agency said.

The agency upgraded City National Bank's issuer and dated subordinated bank debt ratings to A2 from A3 reflects Moody's expectation that the bank will be resolved in a unified manner alongside its Canadian parent, Royal Bank of Canada.

On Deutsche Bank Trust Corp. and its rated subsidiaries will be resolved in a unified manner alongside Deutsche Bank AG with a long-term senior unsecured A3. The Baa2 long-term issuer rating of Deutsche Bank Trust, the Baa1 was placed on review for upgrade.

Moody’s raised Discover Bank’s long-term subordinate rating of Baa2 was upgraded by one notch under Moody's Advanced LGF analysis it is now rated in line with its stand-alone BCA.

Moody's boosted certain bank-level ratings for Fifth Third Bancorp’s, Fifth Third Bank, NA's and MB Financial Bank, NA's long-term subordinated debt ratings by one notch to A3 from Baa1 and are now rated in line with the bank's stand-alone BCA.

The agency placed on review for upgrade the subordinated debt rating of HSBC Bank USA, NA and all long-term ratings of HSBC USA Inc., including the A3 rating on subordinated debt issued by Republic New York Corp.

“The subordinated debt of TCF National Bank was assumed by Huntington National Bank, the banking subsidiary of Huntington Bancshares Inc., through its acquisition of TCF that closed on June 9, 2021. The review for upgrade on the subordinated debt ratings for TCF National Bank and FirstMerit Bank, NA will consider any future balance sheet changes following the merger and the resulting levels of subordination and volume in the liability structure of Huntington that could affect the bank-level subordinated debt ratings,” Moody’s said in a press release.

The agency changed the outlook on JP Morgan Chase & Co.’s senior debt to positive from stable.

Moody's affirmed PNC Bank NA’s and BBVA USA’s issuer and senior unsecured ratings at A2, in line with the banks' BCAs, and affirmed the A2 senior unsecured rating of National City Bank.

“Truist Bank's long-term subordinated debt rating of A2 was upgraded by one notch from A3, as under Moody's advanced LGF analysis they are now rated in line with the bank's a2 stand-alone BCA,” the agency said.

Finally, the agency upgraded to A1 from A2 of Wells Fargo & Co.'s senior debt rating, and of the senior debt ratings of Wells Fargo Finance LLC and Wells Fargo Canada Corp., two subsidiaries whose debt is guaranteed by the parent.

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