30 November 2011, 06:02

S&P downgrades 5 US banks

S&P downgrades 5 US banks

Standard & Poor's ratings service has cut the ratings of five of the six largest U.S. bank holding companies, the CBS reports. Goldman Sachs, Bank of America, Morgan Stanley and Citigroup were downgraded from A to A- and Wells Fargo was cut from AA- to A+. Of the big six, only JPMorgan Chase escaped unscathed.

Standard & Poor's ratings service has cut the ratings of five of the six largest U.S. bank holding companies, the CBS reports.

Goldman Sachs, Bank of America, Morgan Stanley and Citigroup were downgraded from A to A- and Wells Fargo was cut from AA- to A+. Of the big six, only JPMorgan Chase escaped unscathed.

Such downgrades often raise the cost of borrowing for companies, as investors demand a higher interest rate to compensate them for additional risk.

(TASS)

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