US Regional Banks Challenged by Commercial Property, S&P Says.

S&P Global Ratings has lowered its outlook on five US regional lenders to negative from stable due to concerns about the stresses in commercial real estate markets. The ratings provider believes that increases in modified loans and loan maturities could lead to a decline in asset quality and performance for these lenders. The five banks affected by the outlook revision are First Commonwealth Financial Corp., M&T Bank Corp., Synovus Financial Corp., Trustmark Corp., and Valley National Bancorp. S&P also notes that if the Federal Reserve were to cut interest rates, it could alleviate some of the stress in the commercial real estate sector. [Extracted from the article]