NEW YORK — Moody's Investors Service has lowered the ratings of some of the world's largest banks, including Bank of America, JPMorgan Chase, Citigroup and Goldman Sachs.
The ratings agency said late Thursday that the banks were downgraded because their long-term prospects for profitability and growth are shrinking.
The ratings agency said it was especially concerned about banks with significant capital market activities during a time of increased volatility in markets.
A downgrade usually means that it becomes more costly for banks to raise money by selling debt. Investors demand higher interest for riskier debt, which is what the downgrades represent.
Moody's had said in February that it was considering downgrading the credit ratings of major banks.
- How much money should you be saving from each...
- Happiness research inspired one business...
- Airline industry is least liked industries in...
- Are you ready to start using a digital wallet?
- April 15 may be Tax Day, but Tax Freedom Day...
- Why do only half of Americans invest in stocks?
- University of Utah commits to buying more...
- Did you file your taxes jointly or...
- Happiness research inspired one... 13
- EnergySolutions shouldn't store uranium... 8
- Why do only half of Americans invest in... 5
- Contact lens makers sue Utah over... 4
- Airline industry is least liked... 4
- Did you file your taxes jointly or... 4
- University of Utah commits to buying... 3
- Leadership touted at governor's... 3