Three U.S. banking giants have just had their ratings downgraded to “negative” by Moody’s.
The following report is by The Daily Hodl:
Moody’s Investor Service downgraded JPMorgan Chase, Wells Fargo and Bank of America to negative ratings after previously classifying them as stable, MarketWatch reports.
Moody’s is taking no prisoners this time around
It wasn’t just our government debt that got downgraded… pic.twitter.com/sf1MI5Gw3q
— Amy Nixon (@texasrunnerDFW) November 20, 2023
Analyst Peter E. Nerby of Moody’s said that the worsening outlook on bank debt was due to “the potentially weaker capacity of the government of the United States of America (Aaa negative) to support the U.S.’s systemically important banks.”
In particular, JPMorgan’s downgrade was partially because the bank runs a “complex” capital markets business that may post “substantial” risks to its creditors…
