Moody's Lowers Various Bank of America Ratings
Announcement does not include BofA’s covered bonds
By:
By Covered Bond Investor™ Staff
03/26/2009
Moody’s Investors Service announced Wednesday (March 25) that it had lowered ratings related to several Bank of America entities, including the senior debt rating of Bank of America Corporation and the bank financial strength rating of its U.S. banking subsidiary, Bank of America N.A.
The rating agency said the rating actions are “consistent with Moody's recent announcement that it is recalibrating some of the weights and relative importance attached to certain rating factors within its current bank rating methodologies.” It highlighted the importance of capital adequacy, in particular.
BofA has one of the only two covered bond programs in the U.S., but the covered bond program was not mentioned in the rating action announcement.
To read a Bloomberg article on Moody’s downgrade of BofA (and Wells Fargo), click here. To read the full Moody’s announcement of its rating action, first log in (free) at www.moodys.com, then click here.