Fitch's Warning: Potential Downgrades Loom for Major Banks, JPMorgan Chase Included
Fitch Ratings has warned that it may be forced to downgrade dozens of U.S. banks, including JPMorgan Chase, if it lowers the industry's score from AA- to A+. The credit rating agency's previous downgrade in June did not trigger downgrades on banks, but a further downgrade would require a reevaluation of ratings on over 70 U.S. banks. This move would potentially push weaker lenders closer to non-investment grade status. Factors that could lead to downgrades include the path of interest rates determined by the Federal Reserve and an increase in loan defaults beyond historically normal levels.