After Triple A to the United States withdrawndue to the high debt and the deficit expenditure plans outlined by the Trump Administration, the rating agency Moody’s inflicted a serious blow to the US financial system, announcing the downgrading of the main banks American business, such as JP Morgan, Wells Fargo and Bank of America. The move risks increasing financing costs and regulatory pressure on institutions considered of systemic importance.
The reasons for cutting rating
Moody’s Rings in reducing long -term rating of the most important American banks, he mentioned the lower ability of the US government to support banks of global systemic relevance, consequent to the downgrading of the sovereign rating.
Moody’s, in pointing out that no other rating, if not the long -term one,. It was influenced by the downgrading of the sovereign rating, adds that the latter had no impact on score assigned to the banking system US, who Strong+ remains.
The new rating
Moody’s Raws has downgraded by AA1 to AA2 Rating on long -term deposits of the main branches and succursals of Bank of America Corporation, JP Morgan Chase & Co. and Wells Fargo & Company and brought the rating to the same level unusaded senior debt In the long term and the rating of some branches and succursals of The Bank of New York Mellon Corporation.
Downgraded by AA1 to AA2 also i Raw on the risk of counterparty In the long term (CRR) of some branches and succurversals of Bank of America, Bank of New York, JP Morgan, State Street and Wells Fargo.
The prospects On the AA2 deposit rating of Bank of America and Wells Fargo have been modified by negative a stable, while the prospects on the AA2 deposit rating of JP Morgan have been modified by negative a positive. The prospects of rating on the unquirming senior debt AA2 and on the rating of the issuers of some BAC and BN branches have been modified from negative to stable.
Moody’s considerations
While continuing to believe that there is one moderate probability of support On the part of the US government for depositors, non -guaranteed senior creditors and counterparties, the downgrading of the US government rating indicates one less ability to support these bonds with high rating.
The stable perspectives For the ratings of the BAC and WFC subsidiaries, as well as for the non -guaranteed senior debt and the rating of the broadcasters of the BNY subsidiaries, they are aligned with their respective stable prospects of the non -guaranteed senior rating of each of these banking groups. The Positive perspectives JP Morgan’s branches and succursal rating are in line with the positive prospects of the non -guaranteed holding senior debt and reflect a dominant position and the solidity of the franchise.
