Forex News – Fitch downgrades several major banks

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Fitch Ratings agency downgraded seven major banks in the United States, the United Kingdom as well as in Europe. The agency made the announcement late on Thursday after the close of the US markets.

In a statement Fitch said “the financial market challenges the banks face result from both economic developments as well as a myriad of regulatory changes”.

These challenges result from both economic developments as well as a myriad of regulatory changes.

The Fitch downgrades follow from Standard & Poor’s downgrades at the end of last month. Moody’s also issued downgrades recently.

Fitch cut long-term ratings on Barclays Plc and Credit Suisse AG by two notches to A from AA-.

Bank of America Corp, BNP Paribas, Citigroup, Deutsche Bank AG and Goldman Sachs Group all had their long-term ratings cut by one notch.

Meanwhile, Fitch also affirmed its long-term ‘A’ ratings on JPMorgan Chase & Co, Morgan Stanley and UBS AG, as well as its ‘A+’ rating on Societe Generale.

Despite the announcement of the downgrades late on Thursday, this did not have much impact on markets. This morning at the European market open, most of the downgraded banks shares are up.

Jerry Dubrowski, a spokesman for Bank of America, which has had ratings cut by all three agencies, said in an email, “This decision is driven more by concerns about the global economy than the specific credit quality of Bank of America. We continue to maintain strong liquidity levels and to build capital.”