Moody’s may cut bofa, citi, wells ratings

Moody’s Investors Service said it may downgrade the debt ratings of Bank of America Corp, Citigroup Inc and Wells Fargo & Co, citing concerns about waning political willingness to offer support for the largest U.S. banks.

The ratings agency said on Thursday it placed the deposit, senior debt and senior subordinated debt ratings of the three banks under review for possible downgrades.

Lower ratings can translate into higher borrowing costs, which can have a big impact on a bank’s bottom line.

Moody’s said the banks’ ratings are currently buoyed by “uplift” from government support of the banking system during the financial crisis.

Source: Financial Post