logo
Share SHARE
FONT-SIZE Plus   Neg

Fitch Downgrades JPMorgan

Fitch Ratings said Friday that it has downgraded JPMorgan Chase & Co.'s (JPM: Quote) Long-term Issuer Default Rating to 'A+' from 'AA-' and its Short-term IDR to 'F1' from 'F1+'.

Fitch also has placed all parent and subsidiary long-term ratings on Rating Watch Negative.

The rating actions follow JPMorgan's disclosure Thursday of a $2 billion trading loss on its synthetic credit positions in its Chief Investment Office. The positions were intended to hedge the company's overall credit exposure, particularly during periods of credit stress.

While Fitch views the size of loss as manageable, it said the magnitude of the loss and ongoing nature of these positions implies a lack of liquidity. "It also raises questions regarding JPM's risk appetite, risk management framework, practices and oversight; all key credit factors", the rating agency noted.

Fitch believes the potential reputational risk and risk governance issues raised at JPMorgan are no longer consistent with an 'AA-' rating.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Gas explosion in Fresno in California injured 11 people on Friday afternoon. Pacific Gas and Electric Co. (PG&E) said workers who are not affiliated with the company have struck a 12-inch natural gas transmission pipeline and the gas leaked was ignited due to the dig-in. Verizon Communications' FiOS TV service has modified its programming bundles and will now offer new packages so that users can subscribe only for channels they prefer to watch. Instagram, the photo sharing app owned by Facebook, has updated its community guidelines to disallow nudity and harassment in uploaded photos and pictures, as well as cyber bullying.
comments powered by Disqus
RELATED NEWS
Trade JPM now with 
Follow RTT