Twelve Major Banks Downgraded by S&P

Standard & Poor's lowered the credit ratings and outlooks for 12 major U.S. and European banks Friday, including Goldman Sachs and Bank of America, citing increasing industry risk and a deepening economic slowdown.

"We are raising our overall assessment of bank industry risk and believe there will be more volatility in funding markets," S&P said in a statement.

The major independent investment banks' business model has more risk due to more volatility in the funding markets, their reliance on short-term wholesale funding and confidence sensitivity, the rating agency said in a statement.

"The rating actions on GS also reflect our view that the cyclical downturn in GS's core investment banking, trading, and asset-management businesses could well be far more pronounced and extended than we had previously assumed," Standard & Poor's credit analyst Scott Sprinzen said in a press release.

Major Banks' S&P Ratings

New Rating
Old Rating
Bank of America AA-/Negative/A-1 AA/Watch Neg/A-1
Barclays Bank AA-/Negative/A-1 AA/Watch Neg/A-1
Citibank A+/Stable/A-1 AA/Watch Neg/A-1
Credit Suisse A+/Stable/A-1 AA-/Watch Neg/A-1
Deutsche Bank A+/Stable/A-1 AA-/Negative/A-1
Goldman Sachs A/Negative/A-1 AA-/Negative/A-1
HSBC AA/Negative/A-1 AA/Stable/A-1
JPMorgan Chase AA-/Negative/A-1 AA/Negative/A-1
Morgan Stanley A/Negative/A-1 AA-/Negative/A-1
Royal Bank of Scotland A+/Stable/A-1 AA-/Stable/A-1
UBS A+/Stable/A-1 AA-/Watch Neg/A-1
Wells Fargo AA+/Negative/A-1 AAA/Watch Neg/A-1