Moody's cuts Bank of America (snr to Aa3 from Aa2), raises Merrill Lynch
New York, January 08, 2009 -- Moody's Investors Service today lowered the debt ratings of Bank of America
Corporation (senior debt to Aa3 from Aa2) and the ratings on its subsidiaries,
including its lead bank, Bank of America, N.A.
(long-term bank deposits to Aa1 from Aaa). Moody's
bank financial strength rating on the lead bank was lowered two notches
to B from A-, which translates to a change in the baseline
credit assessment to Aa3 from Aa1. The Prime-1 ratings on
the short-term obligations of all Bank of America entities were
affirmed. The rating outlook is negative.
The rating agency also raised the debt ratings of Merrill Lynch to match
those of Bank of America Corporation, while the debt and deposit
ratings of Merrill Lynch's U.S. bank subsidiaries
were raised to equal those of Bank of America's bank subsidiaries.
The rating actions follow the January 1 closing of Bank of America's
acquisition of Merrill Lynch & Co., Inc.,
and complete Moody's rating review that began on September 15, 2008.
The downgrade and negative outlook on Bank of America reflect Moody's
view of the greater challenges Bank of America and Merrill Lynch are likely
to face over the next few years under a more difficult economic environment.
"Bank of America has taken a number of steps recently to bolster
its capital position," said Moody's Senior Vice President,
David Fanger, "but we believe that its pro forma tangible
common equity position remains relatively weak, leaving a modest
cushion to absorb unexpected losses." Additionally,
Moody's believes the combined company's equity position is unlikely
to improve substantially before 2010 because of reduced earnings from
capital markets activities and the need to sustain high loan-loss
provisions to absorb higher credit costs, most notably in credit
cards and residential real estate loans. At September 30,
Bank of America's aggregate exposure to these loan types was roughly
$660 billion. The combined company also remains exposed
to potential further writedowns in legacy structured assets from both
predecessors. Weak earnings, combined with Bank of America's
still sizable quarterly dividend payments of approximately $3.0
billion will substantially limit internal capital formation, constraining
its ability to reduce its leverage.
The downgrade and negative outlook also reflect the challenges which Bank
of America faces in integrating Merrill Lynch. While Bank of America
has demonstrated a solid track record in integrating traditional commercial
banks, Moody's believes the challenges of integrating an investment
banking and wealth management franchise are significantly greater than
those involved in a traditional commercial bank acquisition. Bank
of America typically imposes its own systems and practices upon an acquired
firm, which, as noted, has worked effectively with commercial
banks. However, in the case of Merrill Lynch, this
approach carries a greater risk of employee defections. "Investment
banking and wealth management businesses are heavily reliant on their
personnel and their client relationships. This increases the risk
of customer defections and franchise impairment as a result of a poor
integration," Mr. Fanger said. On the other
hand, it remains important that Bank of America fully integrate
Merrill Lynch's risk management practices with its own; indeed
Moody's believes that Bank of America's risk management practices
may need to be enhanced to accommodate the increased size and complexity
of its capital markets activities following the acquisition of Merrill
Lynch.
Bank of America's ratings continue to be supported by its strong
franchise. The bank has market leading positions in U.S.
deposits, credit cards, and mortgages. With a nationwide
franchise in each of these businesses, the bank has limited regional
geographic concentrations. These businesses generate a relatively
stable pre-provision earnings base with which to absorb credit
costs. The addition of Merrill Lynch's wealth and asset management
businesses further diversify Bank of America's business mix.
The bank has also been prudent in managing its borrower and counterparty
concentrations. Solid liquidity profiles at both the bank and the
parent holding company provide further creditor protection.
Bank of America's debt ratings benefit from Moody's view that Bank
of America enjoys very high systemic support, owing to its position
as the largest deposit-taking institution in the U.S.
with a pro forma market share of nearly 12%. As a result,
the bank subsidiaries of Bank of America Corporation get a two-notch
lift to Aa1 from their baseline credit assessment of Aa3. The holding
company also benefits from systemic support, but not to the same
degree as the bank -- it receives a one-notch lift.
The holding company's senior debt is rated Aa3.
The most likely reasons for any further downgrade would be a significant
deterioration in tangible common equity, most likely due to higher
than anticipated losses in the bank's loan portfolio. "Moody's
would also consider a downgrade if there is evidence of risk management
weaknesses resulting from the integration of Merrill Lynch,"
Mr. Fanger added.
Moody's said that for Bank of America's B bank financial strength
rating to be upgraded, Bank of America would need to improve its
tangible common equity ratios, enhance its profitability,
and demonstrate success in integrating Merrill Lynch without increasing
its risk profile or suffering customer attrition.
Moody's also upgraded the senior debt of Merrill Lynch & Co.,
Inc. to Aa3, the same rating level as Bank of America Corporation's
senior debt. The rating agency noted that as a result of the acquisition,
Merrill Lynch and its subsidiaries have become subsidiaries of Bank of
America Corporation, rather than being merged into Bank of America.
Bank of America has also not guaranteed or assumed any outstanding debt
of Merrill Lynch or any of its subsidiaries other than Merrill Lynch's
outstanding preferred stock. Nevertheless, the upgrade reflects
the strategic importance of Merrill Lynch to Bank of America, and
Moody's expectation that over time the integration will increase
the financial linkages between Merrill Lynch & Co. and Bank
of America Corporation.
The rating agency added that it believes creditors at Merrill Lynch's
U.S. bank subsidiaries have the benefit of the FDIC cross
guarantee provisions, which in Moody's view significantly
increases the likelihood of support from Bank of America, N.A.
for those bank affiliates. The bank deposit and senior debt ratings
of Merrill Lynch's U.S. banking subsidiaries were
raised to Aa1, matching those of Bank of America's lead bank.
At the same time, Moody's upgraded the financial strength
ratings of Merrill Lynch Bank USA and Merrill Lynch Bank & Trust Company
to B- from C. The financial strength rating does not,
however, mirror that of Bank of America, N.A.
which is rated B. The differentiation reflects the less diversified
nature of the Merrill Lynch banks as compared to Bank of America N.A.'s
more traditional banking activities.
Moody's said the A2 insurance financial strength and issuer ratings of
Merrill Lynch Credit Reinsurance Ltd. and ML Reinsurance Solutions
Ltd. remain on review for possible upgrade in order to review the
strategic role of these firms at Bank of America.
Moody's last rating action on Bank of America was on December 19,
2008, when the debt and deposit ratings of Bank of America,
N.A. were put on review for possible downgrade.
The principal methodologies used in rating this issuer were "Bank Financial
Strength Ratings: Global Methodology" (February 2007) and "Incorporation
of Joint-Default Analysis into Moody's Bank Ratings: A Refined
Methodology" (March 2007), which can be found at www.moodys.com
in the Credit Policy & Methodologies directory, in the Ratings
Methodologies subdirectory. Other methodologies and factors that
may have been considered in the process of rating this issuer can also
be found in the Credit Policy & Methodologies directory.
These actions had no impact on the FDIC-guaranteed debt issued
by Bank of America Corporation and by Bank of America, N.A..
That debt remains rated at Aaa with a stable outlook.
The following ratings were affected by today's rating actions:
Issuer: Bank of America Corporation
..Downgrades:
.... Issuer Rating, Downgraded to Aa3
from Aa2
....Junior Subordinated Shelf, Downgraded
to (P)A1 from (P)Aa3
....Multiple Seniority Medium-Term
Note Program, Downgraded to a range of A1 to Aa3 from a range of
Aa3 to Aa2
....Multiple Seniority Shelf, Downgraded
to a range of (P)A2 to (P)Aa3 from a range of (P)A1 to (P)Aa2
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
....Subordinate Regular Bond/Debenture,
Downgraded to A1 from Aa3
....Senior Subordinated Regular Bond/Debenture,
Downgraded to A1 from Aa3
....Senior Unsecured Conv./Exch.
Bond/Debenture, Downgraded to Aa3 from Aa2
....Senior Unsecured Regular Bond/Debenture,
Downgraded to a range of (P)Aa3 to Aa3 from a range of (P)Aa2 to Aa2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Bank of America, National Association
..Downgrades:
.... Bank Financial Strength Rating,
Downgraded to B from A-
.... Issuer Rating, Downgraded to Aa1
from Aaa
....OSO Senior Unsecured OSO Rating,
Downgraded to Aa1 from Aaa
....Multiple Seniority Bank Note Program,
Downgraded to a range of Aa2 to Aa1 from a range of Aa1 to Aaa
....Multiple Seniority Medium-Term
Note Program, Downgraded to a range of Aa2 to Aa1 from a range of
Aa1 to Aaa
....Subordinate Regular Bond/Debenture,
Downgraded to Aa2 from Aa1
....Senior Subordinated Regular Bond/Debenture,
Downgraded to Aa2 from Aa1
....Senior Unsecured Bank Note Program,
Downgraded to Aa1 from Aaa
....Senior Unsecured Deposit Note/Takedown,
Downgraded to Aa1 from Aaa
....Senior Unsecured Regular Bond/Debenture,
Downgraded to Aa1 from Aaa
....Senior Unsecured Deposit Rating,
Downgraded to Aa1 from Aaa
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Countrywide Bank FSB
..Downgrades:
.... Bank Financial Strength Rating,
Downgraded to B- from B+
.... Issuer Rating, Downgraded to Aa1
from Aaa
....OSO Senior Unsecured OSO Rating,
Downgraded to Aa1 from Aaa
....Senior Unsecured Deposit Rating,
Downgraded to Aa1 from Aaa
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Capital Funding Trust
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Capital Fdg. Trust II
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
Issuer: ABN AMRO N.A. Holding Cap Fdg LLC I
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO N.A. Holding Cap Fdg LLC II
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Hldng Cap Fdg LLC III
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Holding Cap Fdg LLC IV
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Holding Cap Fdg LLC V
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Holding Cap Fdg LLC VI
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Hldg Cap Fdg LLC VII
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Hldg Cap Fdg LLC VIII
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO N.A. Hldg Cap Fdg LLC IX
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO N.A. Hldg Cap Fdg LLC X
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO N.A. Hldg Cap Fdg LLC XI
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO N.A. Hldg Cap Fdg LLC XII
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO N.A. Hldg Cap Fdg LLC XIII
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO N.A. Hldg Cap Fdg LLC XIV
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Hldg Cap Fdg LLC XVI
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Hldg Cap Fdg LLC XVIII
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Hldg Cap Fdg LLC XIX
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Holding Cap Fdg LLC XV
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: ABN AMRO North America Holding Company
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: B of A Issuance B.V.
..Downgrades:
....Multiple Seniority Medium-Term
Note Program, Downgraded to a range of A1 to Aa3 from a range of
Aa3 to Aa2
....Senior Unsecured Regular Bond/Debenture,
Downgraded to Aa3 from Aa2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BA Australia Limited
..Downgrades:
....Senior Unsecured Medium-Term Note
Program, Downgraded to Aa1 from Aaa
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust I
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust II
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust III
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust IV
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust IX
..Downgrades:
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust V
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust VI
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust VII
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust VIII
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust X
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust XI
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust XII
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust XIII
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust XIV
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust XIX
..Downgrades:
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust XV
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust XVI
..Downgrades:
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust XVII
..Downgrades:
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust XVIII
..Downgrades:
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BAC Capital Trust XX
..Downgrades:
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Banc of America Preferred Funding Corp.
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to Aa3 from Aa2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BankAmerica Capital I
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BankAmerica Capital II
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BankAmerica Capital III
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BankAmerica Corporation (Old)
..Downgrades:
....Multiple Seniority Medium-Term
Note Program, Downgraded to a range of A1 to Aa3 from a range of
Aa3 to Aa2
....Subordinate Regular Bond/Debenture,
Downgraded to A1 from Aa3
....Senior Unsecured Medium-Term Note
Program, Downgraded to Aa3 from Aa2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BankAmerica Institutional Capital A
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BankAmerica Institutional Capital B
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BankBoston Capital Trust III
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BankBoston Capital Trust IV
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: BankBoston Corporation
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Barnett Banks, Incorporated (Old)
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Barnett Capital Trust III
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Boatmen's Bancshares Inc.
..Downgrades:
....Subordinate Conv./Exch.
Bond/Debenture, Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Countrywide Capital III
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Countrywide Capital IV
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Countrywide Capital V
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Countrywide Financial Corporation
..Downgrades:
....Multiple Seniority Shelf, Downgraded
to a range of (P)A1 to (P)Aa3 from a range of (P)Aa3 to (P)Aa2
....Subordinate Regular Bond/Debenture,
Downgraded to A1 from Aa3
....Senior Unsecured Conv./Exch.
Bond/Debenture, Downgraded to Aa3 from Aa2
....Senior Unsecured Medium-Term Note
Program, Downgraded to Aa3 from Aa2
....Senior Unsecured Regular Bond/Debenture,
Downgraded to Aa3 from Aa2
....Multiple Seniority Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Countrywide Home Loans, Inc.
..Downgrades:
....Junior Subordinated Regular Bond/Debenture,
Downgraded to A1 from Aa3
....Junior Subordinated Shelf, Downgraded
to (P)A1 from (P)Aa3
....Multiple Seniority Shelf, Downgraded
to a range of (P)A1 to (P)Aa3 from a range of (P)Aa3 to (P)Aa2
....Senior Unsecured Medium-Term Note
Program, Downgraded to Aa3 from Aa2
....Senior Unsecured Regular Bond/Debenture,
Downgraded to Aa3 from Aa2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Fleet Capital Trust II
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Fleet Capital Trust IX
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Fleet Capital Trust V
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Fleet Capital Trust VII
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Fleet Capital Trust VIII
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Fleet National Bank (Old)
..Downgrades:
....Subordinate Regular Bond/Debenture,
Downgraded to Aa2 from Aa1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: FleetBoston Financial Corporation
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
....Subordinate Conv./Exch.
Bond/Debenture, Downgraded to A1 from Aa3
....Subordinate Regular Bond/Debenture,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: LaSalle Bank Corporation
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: LaSalle Bank Midwest N.A.
..Downgrades:
....Senior Unsecured Deposit Note/Takedown,
Downgraded to Aa1 from Aaa
Issuer: LaSalle Bank N.A.
..Downgrades:
....Senior Unsecured Deposit Note/Takedown,
Downgraded to Aa1 from Aaa
Issuer: LaSalle Funding LLC
..Downgrades:
....Multiple Seniority Shelf, Downgraded
to a range of (P)A1 to (P)Aa3 from a range of (P)Aa3 to (P)Aa2
....Senior Unsecured Medium-Term Note
Program, Downgraded to Aa3 from Aa2
....Senior Unsecured Regular Bond/Debenture,
Downgraded to Aa3 from Aa2
....Senior Unsecured Shelf, Downgraded
to (P)Aa3 from (P)Aa2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: LaSalle National Corporation
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: MBNA Capital A
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: MBNA Capital B
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: MBNA Capital C
..Downgrades:
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: MBNA Capital D
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: MBNA Capital E
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: MBNA Capital F
..Downgrades:
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: MBNA Capital G
..Downgrades:
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: MBNA Corporation
..Downgrades:
....Multiple Seniority Medium-Term
Note Program, Downgraded to a range of A1 to Aa3 from a range of
Aa3 to Aa2
....Multiple Seniority Shelf, Downgraded
to a range of (P)A2 to (P)Aa3 from a range of (P)A1 to (P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Downgraded to Aa3 from Aa2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: NB Capital Trust I
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: NB Capital Trust II
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: NB Capital Trust III
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: NB Capital Trust IV
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A1 from Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: NB Capital Trust V
..Downgrades:
....Preferred Stock Shelf, Downgraded
to (P)A1 from (P)Aa3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Security Pacific Corporation
..Downgrades:
....Multiple Seniority Medium-Term
Note Program, Downgraded to a range of A1 to Aa3 from a range of
Aa3 to Aa2
....Subordinate Medium-Term Note Program,
Downgraded to A1 from Aa3
....Senior Unsecured Medium-Term Note
Program, Downgraded to Aa3 from Aa2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Shawmut National Corporation
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Summit Bancorp
..Downgrades:
....Preferred Stock Preferred Stock,
Downgraded to A2 from A1
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch & Co., Inc.
..Upgrades:
.... Issuer Rating, Upgraded to Aa3
from A2
....Multiple Seniority Medium-Term
Note Program, Upgraded to a range of A1 to Aa3 from a range of A3
to A2
....Multiple Seniority Shelf, Upgraded
to a range of (P)A2 to (P)Aa3 from a range of (P)Baa1 to (P)A2
....Preferred Stock Preferred Stock,
Upgraded to A2 from Baa1
....Subordinate Regular Bond/Debenture,
Upgraded to A1 from A3
....Senior Unsecured Conv./Exch.
Bond/Debenture, Upgraded to Aa3 from A2
....Senior Unsecured Medium-Term Note
Program, Upgraded to Aa3 from A2
....Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa3 from A2
....Senior Unsecured Shelf, Upgraded
to (P)Aa3 from (P)A2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch & Co., Canada Ltd.
..Upgrades:
....Multiple Seniority Medium-Term
Note Program, Upgraded to a range of A1 to Aa3 from a range of A3
to A2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Bank & Trust Company
..Upgrades:
.... Bank Financial Strength Rating,
Upgraded to B- from C+
.... Issuer Rating, Upgraded to Aa1
from A2
....Senior Unsecured Deposit Rating,
Upgraded to Aa1 from A2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Bank USA
..Upgrades:
.... Bank Financial Strength Rating,
Upgraded to B- from C+
.... Issuer Rating, Upgraded to Aa1
from A2
....Subordinate Regular Bond/Debenture,
Upgraded to Aa2 from A3
....Senior Unsecured Deposit Note/Takedown,
Upgraded to Aa1 from A2
....Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa1 from A2
....Senior Unsecured Deposit Rating,
Upgraded to Aa1 from A2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Canada Finance Company
..Upgrades:
....Multiple Seniority Medium-Term
Note Program, Upgraded to a range of A1 to Aa3 from a range of A3
to A2
....Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa3 from A2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Capital Trust I
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Capital Trust II
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
....Preferred Stock Shelf, Upgraded
to (P)A1 from (P)A2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Capital Trust III
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
....Preferred Stock Shelf, Upgraded
to (P)A1 from (P)A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Finance (Australia) Pty Limited
..Upgrades:
....Senior Unsecured Medium-Term Note
Program, Upgraded to Aa3 from A2
....Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa3 from A2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch International Bank
..Upgrades:
....Senior Unsecured Deposit Program,
Upgraded to Aa3 from A2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Japan Finance Co., Ltd.
..Upgrades:
....Senior Unsecured Medium-Term Note
Program, Upgraded to Aa3 from A2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Preferred Capital Trust III
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Preferred Capital Trust IV
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
....Preferred Stock Shelf, Upgraded
to (P)A1 from (P)A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Preferred Capital Trust V
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Preferred Capital Trust VI
..Upgrades:
....Preferred Stock Shelf, Upgraded
to (P)A1 from (P)A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Preferred Funding I, L.P.
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Preferred Funding II, L.P.
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Preferred Funding III, L.P.
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Preferred Funding IV, L.P.
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
....Preferred Stock Shelf, Upgraded
to (P)A1 from (P)A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Preferred Funding V, L.P.
..Upgrades:
....Preferred Stock Preferred Stock,
Upgraded to A1 from A3
....Preferred Stock Shelf, Upgraded
to (P)A1 from (P)A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch Preferred Funding VI, L.P.
..Upgrades:
....Preferred Stock Shelf, Upgraded
to (P)A1 from (P)A3
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Issuer: Merrill Lynch S.A.
..Upgrades:
....Senior Unsecured Conv./Exch.
Bond/Debenture, Upgraded to Aa3 from A2
....Senior Unsecured Medium-Term Note
Program, Upgraded to Aa3 from A2
....Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa3 from A2
..Outlook Actions:
....Outlook, Changed To Negative From
Rating Under Review
Bank of America Corporation is headquartered in Charlotte, North
Carolina. The bank reported total assets of $2.7
trillion as of September 30, 2008 including the acquisition of Merrill
Lynch on a pro forma basis.
New York
Robert Young
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
David Fanger
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
