S&P just struck a number of big banks with downgrades, including Bank of America, Goldman Sachs and Citi, according to the folks at Forbes. The downgrades were a part of S&P’s overhaul of its rating system. Last week it was noted that the updates in the way S&P rates banks’ could mean lower ratings for some.
Turns out it meant lower ratings for a lot of banks. Just about every major U.S. bank was downgraded under the new methodology: BofA, Citigroup, Morgan Stanley, Goldman Sachs, Wells Fargo, JPMorgan Chase, Bank of New York Mellon.
“All in, while not a good thing and the banks remain on negative watch, we think these changes have been well telegraphed by now and we don’t expect much of a reaction in the equity or debt markets,” writes Nomura bank analyst Glenn Schorr…
Read more at http://www.forbes.com/sites/halahtouryalai/2011/11/29/sp-smacks-dozens-of-banks-with-downgrades
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