May 19, 2025 11:46 PM IST
US Stock Market LIVE Updates: Moody’s Cuts Deposit Ratings at Major Banks After Downgrading US
Moody’s Ratings cut its ratings for deposits at some of the biggest banks, including Bank of America Corp., JPMorgan Chase & Co., citing Friday’s downgrade of the US and the government’s weakened ability to support the firms.
Long-term deposit ratings at units of Bank of America, JPMorgan and Wells Fargo & Co., were lowered by one step to Aa2, Moody’s third-highest level. The bond grader also downgraded the senior unsecured debt ratings for some units of Bank of America and Bank of New York Mellon Corp, cutting them to Aa2 from Aa1.
In addition, Moody’s cut the long-term counterparty risk ratings for some units of Bank of America, BNY, JPMorgan, State Street Corp. and Wells Fargo, lowering them one notch to Aa2.
It’s the latest example of the ripples that Moody’s sovereign downgrade has generated. The firm stripped the US of its top credit rating, lowering it by one step to Aa1, blaming successive administrations and Congress for swelling budget deficits that it said show little sign of abating.
