The Strategist

Analyst: Fitch may downgrade ratings of over 70 U.S. banks

08/16/2023 - 11:11

All financial indications will need to be reevaluated if the rating is downgraded to A+, which is likely to result in a reduction in credit ratings, stated Chris Wolfe.

Gideon Benari
Gideon Benari
Fitch rating agency may revise credit ratings of more than 70 U.S. banks, including eminent financial giants like JPMorgan Chase, Fitch analyst Chris Wolfe said in a CNBC interview.

Wolfe noted that Fitch had downgraded the overall condition of the banking system's rating from AA to AA- back in June. The downgrading didn't draw much attention because it didn't require reevaluating ratings of any particular institutions. "If we go down one more step, to A+, then we will have to reassess all of our financials, which will likely mean a downgrade of the credit ratings," he said.

The analyst continued by saying that, in this situation, the agency's ratings for all seventy-plus banks would be changed.