Moody’s downgrades JPMorgan, BofA, Wells Fargo after U.S. credit cut
REUTERS/Andrew Kelly/File Photo
Signage is seen outside the Moody’s Corporation headquarters in Manhattan, in November 12, 2021.
Moody’s today downgraded the long-term ratings of top American lenders such as JPMorgan Chase, Bank of America and Wells Fargo, after pushing the U.S. out of the top triple-A rating club over its burgeoning $36 trillion debt.
It also downgraded the long-term deposit ratings of BofA, JPMorgan and Wells Fargo to Aa2 from Aa1 and cut the long-term counterparty risk ratings of certain rated subsidiaries and branches of BNY and State Street to Aa2 from Aa1.
The sovereign credit rating cut on Friday sent ripples through global markets and came on a day when U.S. President Donald Trump’s tax bill failed to clear a key procedural hurdle, as hardline Republicans sought deeper spending cuts.
It won approval from a key congressional committee on Sunday in a rare victory for Trump and House Speaker Mike Johnson.
The U.S. ratings downgrade indicated the country has less ability to support the highly rated obligations of these banks, Moody’s said in a note.
