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Gone baby gone

Moody's Downgrades Bank Of America

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8780286/Moodys-downgrades-Bank-of-America.html

The US's largest lender, Bank of America (BoA), has had its credit rating cut by Moody's, which argued the US government is now less likely to support the bank if needed.

After a three-month review, Moody's chopped the rating on BoA's long-term debt to Baa1 from A2, while its short-term rating was maintained.

BoA has been under the spotlight this year amid investors' concern the sluggish US economy will dent its recovery, and as its legal problems escalate.

Moody's said on Wednesday that while it believes the US government would provide some support to any major bank that was in difficulty, "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".

Brian Moynihan, BoA chief executive, has said that the bank does not need to raise any more capital and has embarked on a plan to shrink its balance sheet, which currently stands at more than $2 trillion.

Moody's said the downgrade does not reflect a deterioration in BoA's fundamental credit quality, but added that the moves the lender is making "have not, however, resulted in an upgrade of its standalone financial strength rating or in an offset to the declining assumption of systemic support in the long-term ratings".

Apologies if already posted - couldn't see it anywhere.

Edited by What's'isname

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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