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Moody's may downgrade Bank of America
Moody's Investors Service said it placed on review for possible downgrade the long-term ratings of Bank of America, NA and the other banking subsidiaries of Bank of America Corp., including their Aaa issuer ratings, Aaa senior unsecured bond ratings, Aa1 senior subordinated bond and subordinated bond ratings and Aa2 preferred stock rating.
In September, the agency placed on review for possible downgrade Bank of America's A- bank financial strength rating and the long-term debt ratings of Bank of America Corp. following the latter's announcement that it agreed to acquire Merrill Lynch & Co., Inc. At that time, the other ratings of Bank of America were affirmed, reflecting Moody's opinion that any downgrade of the bank's financial strength rating would be limited to one notch and would not impact the bank's other ratings.
However, since September the macroeconomic climate has continued to deteriorate. In light of this more pessimistic view, Moody's said it now believes there is a greater possibility that the bank financial strength rating could be downgraded by more than one notch, which would likely result in a downgrade of the other ratings.
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