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Investing.com -- Moody’s Ratings has upgraded JPMorgan Chase Bank’s long-term deposit rating to Aa1 from Aa2, while maintaining a stable outlook.
The rating agency also upgraded the bank’s baseline credit assessment to a1 from a2 and its long-term counterparty risk rating to Aa1 from Aa2, according to a Monday announcement. JPMorgan Chase & Co.’s (NYSE:JPM) senior unsecured debt rating was affirmed at A1.
Moody’s cited JPMorgan’s "superior financial performance" as the key driver behind the upgrade. The agency noted that management’s leadership has resulted in steady growth in client engagement, increased market share, and industry-leading pre-provision profitability.
The upgrade positions JPMorgan Chase Bank among Moody’s highest-rated banks globally, reflecting expectations that it will continue to outperform most competitors during economic cycles.
Several JPMorgan subsidiaries also received rating upgrades. J.P. Morgan SE’s long-term deposit and counterparty risk ratings were upgraded to Aa1 from Aa2, while J.P. Morgan Securities plc and J.P. Morgan Securities LLC saw their counterparty risk assessments upgraded to Aa1(cr) from Aa2(cr).
Moody’s highlighted JPMorgan’s effective risk management and governance despite its complex business model and global reach. The agency maintained the bank’s Governance Issuer Profile Score at G-2, noting that while there is some key person risk at the CEO position, the board has focused on developing viable internal succession candidates.
The stable outlook reflects JPMorgan’s strong market position, which Moody’s expects will drive continued growth and client engagement while maintaining leading market positions against both large banks and emerging non-bank competitors.
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