Moody's Takes a Hatchet to Bank Ratings: JPMorgan, BofA, Goldman, Morgan Stanley, Citi, Others Impacted

June 21, 2012 5:39 PM EDT Send to a Friend
As expected, Moody's followed-through with a boatload of bank credit ratings downgrades after the close of trading Thursday.

The long-term senior debt ratings of 4 of these firms were downgraded by 1 notch, the ratings of 10 firms were downgraded by 2 notches and 1 firm was downgraded by 3 notches, Moody's said.

"All of the banks affected by today's actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities", says Moody's Global Banking Managing Director Greg Bauer. "However, they also engage in other, often market leading business activities that are central to Moody's assessment of their credit profiles. These activities can provide important 'shock absorbers' that mitigate the potential volatility of capital markets operations, but they also present unique risks and challenges."

Banks Impacted:
Bank of America Corporation (NYSE: BAC) - Long-term senior unsecured debt to Baa2 from Baa1, outlook negative; Short-term P-2 affirmed

Barclays plc (NYSE: BCS) - Long-term issuer rating to A3 from A1, outlook negative; Short-term to P-2 from P-1

Citigroup Inc. (NYSE: C) - Long-term senior debt to Baa2 from A3, outlook negative; short-term P-2 affirmed

Credit Suisse Group AG (NYSE: CS) - Provisional senior debt to (P)A2 from (P)Aa2, outlook stable; Provisional Short-term (P)P-1 affirmed

The Goldman Sachs Group, Inc. (NYSE: GS) - Long-term senior unsecured debt to A3 from A1, outlook negative; Short-term to P-2 from P-1

HSBC Holdings plc (NYSE: HBC) - Long-term senior debt to Aa3 from Aa2, outlook negative; Provisional Short-term (P)P-1 affirmed

JPMorgan Chase & Co. (NYSE: JPM) - Long-term senior debt to A2 from Aa3, outlook negative; Short-term P-1 affirmed

Morgan Stanley (NYSE: MS) - Long-term senior unsecured debt to Baa1 from A2; outlook negative; Short-term to P-2 from P-1

Royal Bank of Scotland Group plc (NYSE: RBS) - Long-term senior debt to Baa1 from A3, outlook negative; Short-term P-2 affirmed


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