Moody's Cuts Ratings Of Four Large US Banks

(RTTNews) - Moody's Investors Service Thursday said it concluded its review of eight large US banks and downgraded by one notch the senior holding company ratings of Morgan Stanley (MS), Goldman Sachs Group, Inc. (GS), JPMorgan Chase & Co. (JPM), and Bank of New York Mellon Corp. (BK).

Moody's confirmed the senior holding company ratings of Bank of America, Citigroup, State Street, and Wells Fargo.

"The credit ratings of these banking groups each benefit from the agency's assumption of government support," Moody's said in a statement.

"We believe that US bank regulators have made substantive progress in establishing a credible framework to resolve a large, failing bank," said Robert Young, Managing Director. "Rather than relying on public funds to bail-out one of these institutions, we expect that bank holding company creditors will be bailed-in and thereby shoulder much of the burden to help recapitalize a failing bank."