S&P drops BofA outlook to negative

Standard & Poor's said it revised its outlook on Bank of America Corp. to negative from stable.

At the same time, the agency said it affirmed all ratings, including its A/A-1 counterparty credit rating and its ratings on all related entities.

"The outlook revision reflects its increased uncertainty about the U.S. government's willingness to provide additional extraordinary support to highly systemically important financial institutions in a way that benefits debt holders," said S&P credit analyst John Bartko.

"We previously stated its belief that the extraordinary support was temporary. We believe markets are beginning to stabilize and the U.S. government is seeking ways to reduce the potential for moral hazard and systemic risk associated with large financial institutions."

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