S&P Global downgraded seven U.S. regional banks due to increasing funding costs and commercial real estate issues.

The Fed’s rate-hike campaign has forced banks to pay higher interest rates to keep depositors from switching to higher-yielding alternatives.

Comerica, Valley National, UMB Financial, and Associate Banc-Corp lost 0.3% to 0.8%, while KeyCorp fell 1%. S&T Bank and River City Bank were downgraded to “negative” from “stable” due to greater CRE exposure.

The agency’s actions will make borrowing more expensive for the ailing banking sector, which is still recovering from the Silicon Valley Bank and Signature Bank collapses.