A day after downgrading the outlook on GE (GE) debt, and by extension putting pressure on the entire market. S&P is back again with a big banking downgrade, knocking the grade of 11 firms.
However the company said that for the first time, it’s taking into account th willingness of government to intervene and prop up the institutions:
This means none of the banks is likely to have a rating lower than A+, or satisfactory credit quality, S&P said, because of the expectation that government support would be provided if needed.
The banks downgraded were the banking operations of Bank of America Corp., Barclays PLC, Citigroup, Credit Suisse Group, Deutsche Bank AG, J.P. Morgan Chase & Co., Morgan Stanley, Royal Bank of Scotland Group PLC, UBS AG and Wells Fargo & Co. Also cut was Goldman Sachs Group Inc.