Banking Giants Face Downgrade Risks, Fitch Warns

Fitch Ratings has warned that US banking giants, including JPMorgan, could face ratings reassessments if the overall industry's score is downgraded. In June, Fitch lowered its "operating environment" score for US banks, and another downgrade could lead to negative rating actions for more than 70 US banks. The restrictive monetary policy imposed by the Federal Reserve has created a challenging environment for banks, and Moody's has already slashed credit ratings for 10 US banks. The potential downgrades could have consequences for industry leaders and smaller lenders alike.