Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's reviews Bank of America's preferred stock for upgrade

17 Aug 2009

Other ratings not affected

New York, August 17, 2009 -- Moody's Investors Service put on review for possible upgrade the B3 ratings on the noncumulative preferred securities issued by Bank of America Corporation (BAC), including the noncumulative trust preferred securities originally issued by subsidiaries of ABN Amro North America Holding Company and LaSalle Banking Corporation. The rating agency also put on review for upgrade the Ba3 rating on the cumulative preferred security issued by Banc of America Preferred Funding Corporation. No other ratings for BAC were affected by this action.

"Bank of America's recently completed capital raising initiative considerably reduces the near-term risk that it might be forced to suspend dividends on these preferred securities, said Moody's Senior Vice President, David Fanger. "This risk was a significant factor behind the downgrade of the ratings on these securities in March," he added. Today's action follows BAC's success in raising sufficient capital to satisfy the requirement mandated by the U.S. government following its earlier 'stress test' under the Supervisory Capital Assessment Program (SCAP). Through the issuance of new common shares, the sale of assets, and a series of exchanges of preferred securities, BAC has added over $32.4 billion in common equity and will reduce its annual preferred dividend by about $1.0 billion. The capital raise successfully increased BAC's Tier I common by $38.1 billion (plus an anticipated $1.6 billion by year-end 2010 due to reduced preferred dividends), which is in excess of the $33.9 billion buffer required by the SCAP test.

Moody's said that it plans to conclude the review at the same time as it concludes the pending review for upgrade of the D bank financial strength rating (BFSR) of BAC's lead bank subsidiary, Bank of America, N.A. (BANA). The review of the BFSR is considering the positive impact on BAC's and BANA's stand-alone credit profile from the capital raise, but also the significant challenges stemming from the current economic environment as well as the ongoing integration of Merrill Lynch. "After loan loss provisions, Moody's does not expect Bank of America to generate sizable earnings until the second half of 2010 at the earliest," Mr. Fanger noted. High unemployment, a weak U.S. economy, and challenging real estate markets are likely to contribute to a rise in delinquent and problem loans. This will require significant additional loan loss provisions in 2009 and into 2010. The bank's decision to end negotiations to acquire asset protection from the U.S. government on a pool of $118 billion in legacy capital markets assets also could leave it more exposed to adverse developments in the capital markets if losses in the pool were to exceed the $10 billion first loss position originally agreed upon with the U.S. government. Until there is greater clarity on the economic outlook and the likely future trends in BAC's asset quality, these challenges are likely to limit the extent of any upgrade of the BFSR as well as the ratings on BAC's preferred securities.

Moody's last rating action on BAC was on May 14th, 2009 when the D BFSR of BANA was placed on review for possible upgrade, the ratings outlook on BAC's non-cumulative preferred securities was changed to developing from negative, and the outlook on the BAC's junior subordinated trust preferred securities was changed to stable from negative.

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.

The following ratings were affected:

On Review for Possible Upgrade:

..Issuer: Bank of America Corporation

....Multiple Seniority Shelf, Placed on Review for Possible Upgrade, currently (P)B3

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC I

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC II

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC III

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC IV

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC V

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC VI

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC VII

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC IX

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC X

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC XI

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC XII

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC AAH Capital Funding LLC XIII

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC LB Capital Funding LLC I

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC LB Capital Funding LLC II

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BAC North America Holding Company

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: BANA Holding Corporation

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: Banc of America Preferred Funding Corp.

....Preferred Stock, Placed on Review for Possible Upgrade, currently Ba3

..Issuer: BankBoston Corporation

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: Barnett Banks, Incorporated (Old)

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: FleetBoston Financial Corporation

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: LaSalle National Corporation

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: MBNA Corporation

....Multiple Seniority Shelf, Placed on Review for Possible Upgrade, currently (P)B3

..Issuer: Merrill Lynch & Co., Inc.

....Multiple Seniority Shelf, Placed on Review for Possible Upgrade, currently (P)B3

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: Shawmut National Corporation

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

..Issuer: Summit Bancorp

....Preferred Stock, Placed on Review for Possible Upgrade, currently B3

Outlook Actions:

..Issuer: Bank of America Corporation

....Outlook, Changed To Rating Under Review From Stable(m)

..Issuer: BAC AAH Capital Funding LLC I

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC II

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC III

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC IV

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC V

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC VI

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC VII

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC IX

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC X

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC XI

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC XII

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC AAH Capital Funding LLC XIII

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC LB Capital Funding LLC I

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC LB Capital Funding LLC II

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BAC North America Holding Company

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BANA Holding Corporation

....Outlook, Changed To Rating Under Review From Stable(m)

..Issuer: Banc of America Preferred Funding Corp.

....Outlook, Changed To Rating Under Review From Developing

..Issuer: BankBoston Corporation

....Outlook, Changed To Rating Under Review From Developing

..Issuer: Barnett Banks, Incorporated (Old)

....Outlook, Changed To Rating Under Review From Developing

..Issuer: FleetBoston Financial Corporation

....Outlook, Changed To Rating Under Review From Stable(m)

..Issuer: LaSalle National Corporation

....Outlook, Changed To Rating Under Review From Developing

..Issuer: MBNA Corporation

....Outlook, Changed To Rating Under Review From Stable(m)

..Issuer: Merrill Lynch & Co., Inc.

....Outlook, Changed To Rating Under Review From Stable(m)

..Issuer: Shawmut National Corporation

....Outlook, Changed To Rating Under Review From Developing

..Issuer: Summit Bancorp

....Outlook, Changed To Rating Under Review From Developing

New York
David Fanger
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Robert Young
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's reviews Bank of America's preferred stock for upgrade
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​
Moodys.com