Thursday, December 15, 2011

BofA, Goldman, Barclays Have Fitch Ratings Cut

Bank of America Corp., Goldman Sachs and Citigroup had their credit grades cut by Fitch Ratings as the impact of financial regulation and market turmoil (VIX) weighed on the industry, the fine people at Bloomberg report.

The lenders’ long-term issuer default ratings were cut one level to A from A+, Fitch said yesterday in a statement. Barclays Plc , based in London, Credit Suisse, Deutsche Bank and BNP Paribas SA also had their grades lowered.

The moves complete a review of financial firms by the three major rating companies. Moody’s Investors Service cut banks in September, citing a lower probability that the U.S. will support the industry in an emergency. Standard & Poor’s lowered ratings last month. Lenders including Bank of America and Citigroup have said they may have to post billions of dollars in collateral and face higher funding costs in the event of downgrades….

Read more at http://www.bloomberg.com/news/2011-12-15/bank-of-america-goldman-sachs-barclays-default-ratings-reduced-by-fitch.html

No comments:

Post a Comment