UPDATE 1-S&P downgrades multiple US banks on growing liquidity worries

A sharp rise in interest rates by the U.S. Federal Reserve is fueling liquidity concerns as costs tied to funding deposits surge, the S&P said in a summarized note. The agency cut its ratings on Associated Banc-Corp and Valley National Bancorp on funding risks and higher reliance on brokered deposits, while UMB Financial Corp , Comerica Bank and KeyCorp were downgraded on large deposit outflows and prevailing higher interest rates.