S&P Downgrade of Banks
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This is old news that this was coming given what the banking industry has been through over the last 3 ½ years. However, since I have several clients looking at buying bank branches with some of these folks as tenants, I thought it would be a good idea to put this out there.
S&P has revised its rating criteria and as a result almost all the world’s banks were downgraded excepted for two in China. Even the renowned Rabobank from Netherlands that was the only remaining bank with an AAA rating was downgraded. It still has the highest S&P rating of a bank and is considered the 6th safest bank in the world. The top U.S. bank was NY Bank / Mellon at 27th and the JP Morgan / Chase at 40th and Wells Fargo at 42nd.
They’re still safe as retail tenants in single tenant retail opportunities and are almost always absolute net or triple net with long leases. They’ve been fine, trouble tenants where we have them and still near the top of my recommended list. For folks in 1031 exchanges it’s still one of the very best bets.
Money / CNN – News – Bank Ratings Downgrades S&P
And for ratings search at Standard and Poors.com
