Moody’s downgraded the long-term ratings of top American lenders such as JPMorgan Chase, Bank of America, and Wells Fargo due to the US credit rating cut. The downgrade follows the country’s exit from the top triple-A rating club, which was triggered by a growing debt of $36 trillion.
The US sovereign credit rating cut has sent shockwaves through global markets, coinciding with a tax bill failure in Congress that left hardline Republicans seeking deeper spending cuts. However, President Donald Trump’s tax bill gained approval from a key congressional committee on Sunday, a rare victory for the president and House Speaker Mike Johnson.
Moody’s stated that the downgrade indicates the US has less ability to support the highly rated obligations of these banks. This move affects not only JPMorgan Chase, Bank of America, and Wells Fargo but also some subsidiaries and branches of BNY and State Street, which saw their long-term counterparty risk ratings cut to Aa2 from Aa1.
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Source: https://www.reuters.com/markets/us/moodys-downgrades-jpm-bofa-wells-fargo-after-us-credit-rating-cut-2025-05-19