Fitch Ratings said its outlook for the U.S. banking sector remains negative, although it said many of the factors that put negative pressure on the ratings are easing.

The ratings agency's outlook is mainly focused on regional banks — where a large portion of U.S. Fitch-rated institutions remain on watch for downgrade or have a negative outlook. Fitch warned fundamental financial performance for the banking sector will remain generally weak throughout most of this year, although it said this won't likely result in broad downgrades.

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