Fitch Ratings acted on the ratings of PNC Financial Services Group Inc., U.S. Bancorp, Capital One Financial Corp., Truist Financial Corp. and Northern Trust Corp., which have been Under Criteria Observation since March.

The ratings actions reflect Fitch's implementation of its updated bank rating criteria, and do not reflect a change in the agency's current or expected view of the companies' credit fundamentals.

Fitch downgraded the holding company senior unsecured debt ratings of PNC Financial, Truist Financial, Northern Trust and U.S. Bancorp, and removed them from Under Criteria Observation status. The holding company senior unsecured debt will be placed one notch below the banks' respective issuer default ratings, indicating expected below average recoveries in a resolution scenario since their debt buffers are "clearly below" 10% of risk-weighted assets.

The holding company short-term senior unsecured rating for Northern Trust was affirmed at F1+.

For Capital One, Fitch affirmed its senior unsecured debt rating at A- and removed the ratings from Under Criteria Observation. This reflects expected average recoveries in a resolution scenario given its debt buffers are "not clearly below" 10% of the risk-weighted assets for the group. The senior debt is equalized with Capital One's long-term issuer default rating.

Additionally, Fitch affirmed the bank-level senior unsecured debt rating of Capital One NA, Capital One Bank (USA) NA, PNC Bank NA, Truist Bank and US Bank NA, and removed the ratings from Under Criteria Observation status.

The affirmation reflects the use of alternate notching for the entity's subordinated debt, as applicable, of one notch in which case the agency does not notch down senior unsecured debt, as well as the expectation of average recoveries for senior unsecured debt holders at the bank-level driven by Fitch's view of U.S. regulators' likely approach to early intervention and resolution alternatives.

Fitch also affirmed the bank-level subordinated debt ratings of Capital One NA, Capital One Bank (USA), PNC Bank, Truist Bank and Northern Trust Co. and removed the ratings from Under Criteria Observation status. The rating is notched one level below the entities' respective viability rating for loss severity. The affirmations reflect alternate notching to the base case of two notches due to Fitch's view of U.S. regulators' likely approach to early intervention and resolution alternatives under U.S. law.