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JPMorgan less likely to be downgraded as 'Whale' passes - Fitch

NEW YORK, Oct 10 (Reuters) - JPMorgan Chase & Co hasmade enough progress containing its $5.8 billion of derivativeslosses and tightening its risk controls that the outlook for itscredit rating has improved to stable from negative, FitchRatings said on Wednesday.

JPMorgan "has not suffered meaningful damage to itsfranchise from the losses in its Chief Investment Office," therating agency said. It was referring to the business unit of thebank where a trader became known as the "London Whale" forestablishing outsized positions in credit derivatives.

Fitch had downgraded JPMorgan one notch to A+ and put therating on "Watch Negative" the day after JPMorgan shocked WallStreet on May 10 by announcing it had lost billions of dollarson trades that CEO Jamie Dimon called "stupid."

The losses have set off investigations by U.S. criminalprosecutors and by agencies in multiple countries. JPMorganconducted its own investigation and fired and reassigned staff.

Fitch said it changed JPMorgan's outlook to stable as partof a periodic review of 12 global banks. Fitch changed no otherratings or outlooks for the other banks in the group.

Fitch outlooks generally apply for the next 12 months. Fitch left in place the A+ rating for JPMorgan.

JPMorgan is scheduled to report third-quarter results onFriday morning and give its own update of the London Whalelosses.

(Reporting by David Henry in New York. Editing by Andre Grenon)

((David.Henry@thomsonreuters.com)(+1-646-223-6114)(Reuters

Messaging: david.henry.reuters.com@reuters.net))

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