Moody's Takes a Hatchet to Bank Ratings: JPMorgan, BofA, Goldman, Morgan Stanley, Citi, Others Impacted
Tweet Send to a Friend
Get Alerts BAC Hot Sheet
Price: $13.43 +0.52%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.3%
EPS Growth %: -35.5%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.3%
EPS Growth %: -35.5%
Trade BAC Now!
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
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Says Tesla (TSLA) 'Top Pick in U.S. Autos'
- Berkshire Hathaway (BRK-A) Cut to 'AA' From 'AA+' by S&P
- UPDATE: BofA/Merrill Lynch Upgrades J. C. Penney (JCP) to Neutral
Create E-mail Alert Related Categories
Corporate News, Credit Ratings, Hot ListRelated Entities
Credit Suisse, JPMorgan, Citi, Morgan Stanley, Bank of America, Barclays, HSBC
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
