Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Fitch Downgrades JPMorgan

RELATED NEWS
Trade JPM now with 
5/11/2012 5:12 PM ET

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.

Click here to receive FREE breaking news email alerts for JPMorgan Chase & Co. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Russian Foreign Minister Sergei Lavrov warned Wednesday that Moscow would retaliate strongly if its "interests" in Ukraine are attacked. He also criticized the Ukrainian administration for relaunching its so-called anti-terrorist operation in the east of the country a day earlier. Lavrov's remarks came in an interview with Russia Today, which published excerpts of the English-language interview to While selling pressure has remained relatively subdued, stocks continue to see modest weakness in mid-day trading on Wednesday. The losses on the day come on the heels of the upward trend seen over the past several sessions. The major averages have moved roughly sideways in recent trading, lingering in the red. While a majority of Kentucky voters approve of the way Rand Paul is handling his job as Senator, the results of New York Times/Kaiser Family Foundation poll showed that voters from the Bluegrass State have a more mixed view on Paul's potential run for president in 2016.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.