The worst appears to be over for domestic letter-of-credit providers, even as trouble for their Japanese counterparts persists.

"U.S. banks have recovered substantially since the dark days of 1991," said Nicholas Krasno, senior analyst at Moody's Investors Service. "In general, they are performing much better because overall profitability is high --and has been high for some time -- and asset quality has improved."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.