Moody's downgrades long-term credit ratings of major US banks

Moody's downgraded the US long-term credit ratings for several major US banks, days after it lowered the US sovereign credit rating.

The agency reduced the credit ratings of institutions including JPMorgan, Bank of America, Wells Fargo, and Bank of New York Mellon from "Aa1" to "Aa2".

In its statement, Moody’s cited the weakened ability of the US government to support these banks, following its decision on May 16 to downgrade the country’s top-tier credit rating.

The agency cut the US sovereign rating from "AAA" to "Aa1" after markets closed at the end of last week, becoming the last of the major rating agencies to strip the country of its highest credit grade.

The move sparked waves of concern across global markets, as Moody’s warned of rising debt levels, persistent fiscal deficits, and the ongoing failure of successive US administrations and Congress to implement measures that would reverse the trend.