Fitch warns it may be forced to downgrade multiple banks, including JPMorgan - CNBC
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2023-08-15 19:18
An analyst at Fitch Ratings warned that U.S. banks, including JPMorgan Chase, could be downgraded if the agency

An analyst at Fitch Ratings warned that U.S. banks, including JPMorgan Chase, could be downgraded if the agency further cuts its assessment of the operating environment for the industry, according to a report from CNBC on Tuesday.

In June, Fitch lowered the score of the U.S. banking industry's "operating environment" to AA- from AA, citing pressure on the country's credit rating, gaps in regulatory framework and uncertainty about the future trajectory of interest rate hikes.

Another one-notch downgrade, to A+ from AA-, would force Fitch to reevaluate ratings on each of the more than 70 U.S. banks it covers, analyst Chris Wolfe told CNBC.

Lenders were rocked earlier this month after Fitch's peer Moody's downgraded 10 mid-sized U.S. banks and warned it may cut ratings of several others.

(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)

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