Daily Management Review

Fitch affirms ratings of major U.S. banks


The long-term issuer default ratings (IDR) of four of the largest U.S. banks, including Bank of America Corp. (BofA) at "AA-", Citigroup Inc. at "A," JP Morgan Chase & Co. at "AA-," and Goldman Sachs at "A," have been confirmed by international rating agency Fitch Ratings.

jpellgen (@1179_jp)
jpellgen (@1179_jp)
The banks' rating outlooks are still in a steady state.

According to the ratings agency, "BofA is the highest-rated bank in Fitch's global ratings, which reflects its strong retail and commercial franchises and Fitch believes that BofA's consistent strategy to responsibly expand its franchise over the past few years will result in relatively lower credit costs and solid, stable earnings performance over the long term."

The deliberate alterations in the bank's organizational structure and investments in its clientele are credited with improving Citigroup's rating.

Regarding JP Morgan Chase & Co.'s rating, the agency places the company's consistent financial performance through a number of economic cycles as well as its capacity to increase capital and liquidity in order to satisfy more onerous regulatory requirements.

The higher capitalization, operating earnings, and enhanced credit profile of Goldman Sachs all contributed to the rating's affirmation.

source: fitchratings.com