Wednesday, September 21, 2011

Credit Rating Downgrades for Three Big Banks

Posted By on Wed, Sep 21, 2011 at 3:53 PM

Moody's Investors Service has lost a bit of confidence in Bank of America, Citigroup and Wells Fargo today, downgrading credit ratings for the three banking giants.

"The downgrades result from a decrease in the probability that the U.S. government would support the bank, if needed," Moody said.

The ratings agency cut B of A's long-term senior debt to Baa1 from A2 and lowered short-term debt to Prime 2 from Prime 1. Moody's also cut its ratings on Citgroup's short-term debt to Prime 2 from Prime 1, while affirming its A3 long-term ratings. And Moody's lowered its rating on Wells Fargo's senior debt to A2 from A1.

In June, the ratings agency had put Bank of America, Citigroup and Wells Fargo on review for a possible downgrade.

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