Fitch cuts Goldman, Deutsche, five other large banks

Fri Dec 16, 2011 10:12am EST

A trader works in the Goldman Sachs booth on the main trading floor of the New York Stock Exchange July 29, 2011.   REUTERS/Mike Segar

A trader works in the Goldman Sachs booth on the main trading floor of the New York Stock Exchange July 29, 2011.

Credit: Reuters/Mike Segar

(Reuters) - Fitch Ratings, the third-biggest of the major credit rating agencies, on Thursday downgraded Goldman Sachs, Deutsche Bank and five other large banks based in Europe and the United States, citing "increased challenges" in the financial markets.

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

The agency cut by one notch its long-term ratings on Bank of America Corp, BNP Paribas, Citigroup, Deutsche Bank AG and Goldman Sachs Group.

The financial market challenges the banks face "result from both economic developments as well as a myriad of regulatory changes," Fitch said in an announcement issued shortly after regular market hours in New York.

In a separate announcement about the downgrade of Citigroup, Fitch cited "policy momentum" against using taxpayer money to support banks during a crisis.

Fitch's actions follow downgrades by Standard & Poor's of several major banks at the end of last month. S&P's moves came as part of an overhaul of its ratings methods to incorporate lessons learned in the financial crisis. Moody's also issued downgrades recently.

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."

Fitch on Thursday 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.

(Reporting by David Henry and Walter Brandimarte in New York and Rick Rothacker in Charlotte, North Carolina; Editing by Steve Orlofsky and Richard Chang)

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Comments (4)
Arbrene wrote:
More bad news for the economy!!

Dec 16, 2011 5:12am EST  --  Report as abuse
Intriped wrote:
And less dollars to let go to cover loans, tight market. Emerging markets deserve a break but they may not get one because the Euro threat etc, etc.

Dec 16, 2011 7:50am EST  --  Report as abuse
madaboutthis wrote:
The banksters deserve it and far worse than that. I hope they go into junk status and bankrupt themselves but good!

Dec 16, 2011 8:55am EST  --  Report as abuse
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