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Bank Of America Has Ratings Cut By Moody's

CNBC.com
Wednesday, 25 Mar 2009 | 3:55 PM ET

Moody's Investors Service lowered the senior debt rating of Bank of America from A1 to A2.

It also Lowered the senior subordinated debt rating to A3 from A2, and the junior subordinated debt rating to Baa3 from A2.

And the preferred stock rating for BofA was downgraded to B3 from Baa1. The holding company's short-term rating was affirmed at Prime-1.

Bank of America
CNBC.com
Bank of America

Today's actions had no impact on the FDIC-guaranteed debt issued by Bank of America. That debt remains rated Aaa with a stable outlook.

In a statement, Moody's said Bank of America's capital ratios could come under pressure in the short-term, increasing the probability that systemic support will be needed.

Moody also said the rating actions are consistent with its recent announcement that it is recalibrating some of the weights and relative importance attached to certain rating factors within its current bank rating methodologies.

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