Moody’s Investors Service said today that it has placed Bank of America Corp.’s primary bank subsidiary, Connecticut’s largest out-of-state bank, on review for possible downgrade.
The move comes as Charlotte, N.C.-based Bank of America N.A. is set to close on its acquisition of investment bank Merrill Lynch & Co. by year-end.
The bank subsidiary is currently rated Aaa.
Moody’s last rating action on the bank was in September, when Bank of America announced its $50 billion acquisition of New York-based Merrill Lynch. At the time, Bank of America N.A’s bank financial strength rating of A- and Bank of America’s long-term debt rating of Aa2 were placed on review for possible downgrade.
While those two review ratings are still pending, Moody’s said current economic turmoil could negatively affect Bank of America N.A., possibly resulting in a downgrade of more than one notch.
At 11 a.m., Bank of America shares traded at $13.78, down 2 cents, or 0.1 percent. (AP)
