Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Moody's Downgrades Bank of America ( to Baa1 from A2 )
Street Insider ^ | 09/21/2011

Posted on 09/21/2011 9:52:51 AM PDT by SeekAndFind

Moody's Investors Service has downgraded the ratings of Bank of America Corporation's (NYSE: BAC) holding company to Baa1 from A2 for long-term senior debt and to Prime-2 from Prime-1 for short-term debt. The long-term deposit ratings of Bank of America N.A. (BANA) were downgraded to A2 from Aa3, while BANA's short-term rating was affirmed at Prime-1. The actions conclude a review for downgrade announced on June 2, 2011. The outlook on the long-term senior ratings remains negative.

The downgrades result from a decrease in the probability that the US government would support the bank, if needed. Moody's believes that the government is likely to continue to provide some level of support to systemically important financial institutions. However, it is also more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled, as the risks of contagion become less acute. Moody's is therefore lowering the amount of support it incorporates into Bank of America's ratings to levels reflected prior to the crisis.

The downgrades do not reflect a weakening of the intrinsic credit quality of BAC. BAC has made significant progress in improving in its capital and liquidity positions, in shedding legacy and noncore assets, in measuring and monitoring risk, and in managing its risk appetite. These improvements have not, however, resulted in an upgrade of its stand-alone financial strength rating or in an offset to the declining assumption of systemic support in the long-term ratings. This is due in large part to the risks that continue to be presented by the bank's exposures in its mortgage business.


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: bankofamerica; downgrade; moodys

1 posted on 09/21/2011 9:53:01 AM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind
Moody's Downgrades Bank of America ( to Baa1 from A2 )

At first I thought it said Baal, not Baa1 !!!

Oh well, either way...
2 posted on 09/21/2011 10:32:15 AM PDT by BikerJoe
[ Post Reply | Private Reply | To 1 | View Replies]

To: BikerJoe

The stock has hit $6.66 a couple times today.


3 posted on 09/21/2011 10:33:53 AM PDT by EEGator
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind
Moody's Investors Service has downgraded the ratings of Bank of America Corporation's (NYSE: BAC) holding company to Baa1 from A2


(Threatening voice) "Did they really."
4 posted on 09/21/2011 10:57:20 AM PDT by Ellendra (God feeds the birds of the air, but he doesn't throw it in their nests.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BikerJoe

Elijah had 450 priests of Baal killed...but they’re back!


5 posted on 09/21/2011 11:47:03 AM PDT by Verginius Rufus
[ Post Reply | Private Reply | To 2 | View Replies]

To: All

the foundation of this house needs help and Obama thinks changing new curtains will do the trick.


6 posted on 09/21/2011 1:08:09 PM PDT by newnhdad
[ Post Reply | Private Reply | To 5 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson