Moody’s Downgrades JPMorgan, Bank of America, and Wells Fargo Amid US Credit Rating Slide and Soaring National Debt Concerns

EddieJayonCrypto

 21 May 25

tl;dr

Moody’s downgraded the long-term deposit ratings of JPMorgan Chase, Bank of America, and Wells Fargo to Aa2, citing the U.S. government's weakened ability to support these banks. This follows Moody’s downgrade of the U.S. credit rating from AAA to AA1 due to rising national debt and interest payment...

Moody’s has downgraded the long-term deposit ratings of three major U.S. banks—JPMorgan Chase, Bank of America, and Wells Fargo—to Aa2. This downgrade reflects Moody’s assessment of the U.S. government's diminished capacity to support these institutions following the country's credit rating cut from AAA to AA1.

The rating agency's decision comes amid concerns over the United States' escalating national debt and rising interest payments, which now outpace those of other countries holding similar credit ratings. Moody’s highlighted that mandatory spending, including interest expenses, is projected to increase significantly by 2035, potentially limiting future budget flexibility.

In addition to deposit ratings, Moody’s also downgraded senior unsecured debt ratings for certain subsidiaries and branches of Bank of America and lowered the long-term counterparty risk ratings for parts of Bank of America, JPMorgan Chase, and Wells Fargo from Aa1 to Aa2.

This wave of downgrades underscores the interconnected risks facing U.S. financial institutions as well as the broader impact of government fiscal challenges on creditworthiness within the banking sector.