Fitch warns it may be forced to downgrade
multiple banks, including JPMorgan - CNBC
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[August 15, 2023]
(Reuters) - An analyst at Fitch Ratings warned that U.S. banks,
including JPMorgan Chase, could be downgraded if the agency further cuts
its assessment of the operating environment for the industry, according
to a report from CNBC on Tuesday. |
The Empire State Building and Manhattan
skyline are pictured from the Summit at One Vanderbilt observatory in
Manhattan in New York City, U.S., April 14, 2023. REUTERS/Mike
Segar/File Photo |
In
June, Fitch lowered the score of the U.S. banking industry's
"operating environment" to AA- from AA, citing pressure on the
country's credit rating, gaps in regulatory framework and
uncertainty about the future trajectory of interest rate hikes.
Another one-notch downgrade, to A+ from AA-, would force Fitch
to reevaluate ratings on each of the more than 70 U.S. banks it
covers, analyst Chris Wolfe told CNBC.
Lenders were rocked earlier this month after Fitch's peer
Moody's downgraded 10 mid-sized U.S. banks and warned it may cut
ratings of several others.
(Reporting by Niket Nishant in Bengaluru; Editing by Maju
Samuel)
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