Thursday, December 15, 2011

Fitch downgrades Bank of America, other big banks

Fitch Ratings downgraded Bank of America and seven other big banks on Thursday, citing the uncertain economy and a tough regulatory environment.

The Charlotte-based bank's issuer default rating fell to "A" from "A+" in the move. A statement from Fitch said that Bank of America's legal risk is higher than its peers, and capital position weaker.

Wells Fargo's rating was unchanged. Goldman Sachs and Barclays were also among the downgraded.

The wave of downgrades came as Fitch completed a broad review of the largest banks. It also determined that only eight institutions would likely bring government support in the event of a crisis. Both Bank of America and Wells Fargo were on the list.

Fitch's downgrade is the latest to hit Bank of America. Standard & Poor's cut Bank of America's rating late last month.

Bank of America's stock was relatively unchanged Thursday, closing at $5.26.