Ratings agency Fitch Ratings has warned that it may have to downgrade several of them, including JPMorgan Chase & Co.
Fitch could downgrade to A+ in the US banking industry. It should be noted that the rating agency lowered its score in the “operating environment” of the country’s banks by one notch to AA- in June. At that moment, he had cited reasons including rate uncertainty and pressure on the overall US rating.
“A further downgrade to A+ will cause the company to review its ratings on more than 70 US banks in its coverage”said Chris Wolfe, an analyst at Fitch in an exclusive interview with CNBC. “If we were to move it to A+, that would recalibrate all of our financial measures and likely translate into negative rating actions,” he added.
If America’s banks are downgraded to A+, companies like JPMorgan and Bank of America Corp will also have to step down.
The stock market news comes just days after Fitch downgraded its long-term US rating to AA+ due to rising debt and political dysfunction. Peer Moody’s also recently downgraded a number of US banks.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
