Moody’s Investors Service has downgraded the credit ratings of 10 small and medium-sized U.S. banks and said it may downgrade larger creditors, including the U.S. Bancorp (NYSE:USB) , Bank of New York Mellon Corp (NYSE:BK), State Street Corp (NYSE:STT) and Truist Financial Corp (NYSE:TFC), as part of a comprehensive review of mounting pressures on the industry.

Higher financing costs, potential regulatory capital deficiencies and rising risks linked to commercial real estate lending amid weakening demand for office space are among the tensions prompting the review, Moody’s said in a series of notes on Monday.

“Collectively, these three events lowered the credit profile of several US banks, although not all banks equally,” Moody’s wrote in some of the ratings.

Among the companies that had their ratings cut were M&T Bank Corp., Webster Financial Corp., BOK Financial Corp., Old National Bancorp, Pinnacle Financial Partners Inc. and Fulton Financial Corp.

Northern Trust Co. and Cullen/Frost Bankers Inc. are also being analyzed for relegation.

In addition, Moody’s has adopted a “negative” outlook for 11 creditors, including PNC Financial Services Group, Capital One Financial Corp., Citizens Financial Group Inc., Fifth Third Bancorp, Regions Financial Corp., Ally Financial Inc., Bank OZK and Huntington Bancshares Inc.

Investors, rocked by the collapse of a regional bank in California and New York this year, have been watching closely for signs of stress in the industry as rising interest rates force companies to pay more for deposits and raise the cost of funding from alternative sources. At the same time, these higher rates are eroding banks’ asset values ​​and making it harder for commercial real estate borrowers to refinance their debt, which could weaken lenders’ balance sheets.

“Rising funding costs and declining income metrics will erode profitability, the first buffer against losses,” Moody’s wrote in a separate note explaining the changes. “Asset risk is increasing, particularly for small and medium-sized banks with large Commercial Real Estate (CRE) exposures.”

Some banks have reduced loan growth, which preserves capital but also slows the shift in their loan mix towards higher yielding assets, Moody’s said.

Banks that rely on more concentrated or higher levels of unsecured deposits are more exposed to these pressures, especially banks with high levels of bonds and fixed-rate loans.