Rating agencies also downgraded their long-term deposit ratings at Bank of America, JPMorgan Chase and Wells Fargo to Aa2 from Aa1, downgrading NYCBBK.N.AndState StreetSecuritiesSTT.N.The long-term counterparty risk rating of certain rated subsidiaries and branches was downgraded from Aa1 to Aa2.
Friday's sovereign credit rating downgrade (link), causing ripples in global markets. On the day, President Donald Trump's tax bill failed to pass a key procedural hurdle as hardline Republicans sought deeper spending cuts.
The bill was approved by a key congressional committee on Sunday (link), a rare victory for Trump and House Speaker Mike Johnson.
Moody's said in a note that the U.S. rating downgrade indicates that the country's ability to support the highly rated debt of these banks has declined.
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