Morgan Stanley (MS) Bracing for a 3-Notch Downgrade - FBN

Morgan Stanley (NYSE: MS) investors know to expect a credit rating downgrade, but according to the latest report from FOX Business Network (FBN) Senior Correspondent Charlie Gasparino the company is bracing for the worse-case scenario.

According to Gasparino, Morgan Stanley is bracing for for a three-notch downgrade, which could come as soon as today.

"Market players are saying Morgan Stanley could get a three-notch downgrade as early as today," Gasparino reported. "That would be a pretty big hit. Inside Morgan Stanley, officials are expecting a two-notch downgrade, but investors are still pricing in a three-notch downgrade."

On JP Morgan, Gasparino said the comapny plans to announce a 'worst-case scenario' loss during their July 13th earnings announcement.

"JPMorgan plans to announce a 'worst-case scenario' loss during their July 13th earnings announcement," he said. "JPMorgan is not going to exit this thing anytime soon. Unless things dramatically change, there could be a 2 billion to 5 billion dollar loss here."

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