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Published on Gold Anti-Trust Action Committee (http://gata.org)

Mineweb interviews Tocqueville Gold Fund''s John Hathaway

By cpowell
Created 2002-10-10 07:00

Moody's cuts J.P. Morgan senior debt rating

NEW YORK, Oct. 9 (Reuters) -- Moody's Investors Service
today cut J.P. Morgan Chase & Co.'s long-term debt
ratings, affecting about $42 billion of debt, reflecting
concern about the No. 2 U.S. banking company's
medium- and long-term business outlook.

Moody's cut J.P. Morgan's senior unsecured debt
one notch to "A1," its fifth highest grade, from "Aa3,"
and cut several other ratings. Its rating outlook is now
stable.

In a press statement, Peter Nerby, a Moody's senior
vice president, said J.P. Morgan's financial performance
"has lagged behind similarly rated peers during this
cycle. Moody's is concerned that (J.P. Morgan's) recent
problems may further complicate its ability to execute
its capital market strategy, which has so far met with
only partial success."

He said J.P. Morgan's liquidity is "strong" and capital
ratios are "good."

The downgrade could make it more costly for J.P.
Morgan to borrow as Chief Executive William Harrison
tries to cut costs. The bank is preparing to cut thousands
of jobs, people familiar with the companies said, as
underwriting and trading revenue decline and loan
losses mount.

Standard & Poor's Ratings Services on Sept. 17 cut
J.P. Morgan's long-term debt rating one notch to
"A-plus," equal to Moody's new rating.


Source URL:
http://gata.org/node/1574