Fitch Ratings downgraded Truist Financial’s credit rating, calling the insurance business it is selling an “important source of revenue and business diversification.
The one-notch downgrade took Truist to an ‘A’ rating from ‘A+.’
Earlier this week, the North Carolina-based bank said it would sell its remaining stake in Truist Insurance Holdings to an investor group led by private equity firms Stone Point Capital and Clayton, Dubilier & Rice.
Truist swung to a loss in the fourth quarter as higher interest rates hammered the bank.
Moody’s Investors Service put the bank on review for a downgrade late Tuesday, saying the sale will mean Truist will be less diversified and have greater reliance on net interest income.
“As a consequence of these factors it will likely have greater earnings volatility and potentially less resilience to unexpected losses,” Moody’s said.