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RPT-TEXT-Fitch cuts JPMorgan Chase & Co ratings
2012年5月11日 / 晚上8点38分 / 5 年内

RPT-TEXT-Fitch cuts JPMorgan Chase & Co ratings

May 11 - Fitch Ratings has downgraded JPMorgan Chase & Co.'s 	
(JPM) Long-term Issuer Default Rating (IDR) to 'A+' from 'AA-' and its 	
Short-term IDR to 'F1' from 'F1+'. Fitch has placed all parent and subsidiary 	
long-term ratings on Rating Watch Negative. 	
	
Fitch has also downgraded JPM's viability rating (VR) to 'a+' from 'aa-' and 	
placed it on Rating Watch Negative. In addition, Fitch affirmed JPM's '1' 	
support rating and 'A' support rating floor. A full list of rating actions 	
follows at the end of this release.	
	
The rating actions follow JPM's disclosure yesterday of a $2 billion trading 	
loss on its synthetic credit positions in its Chief Investment Office (CIO). The	
positions were intended to hedge JPM's overall credit exposure, particularly 	
during periods of credit stress. 	
	
Fitch views the size of loss as manageable. That said, the magnitude of the loss	
and ongoing nature of these positions implies a lack of liquidity. It also 	
raises questions regarding JPM's risk appetite, risk management framework, 	
practices and oversight; all key credit factors. Fitch believes the potential 	
reputational risk and risk governance issues raised at JPM are no longer 	
consistent with an 'AA-' rating. 	
	
Still, at the 'A+' level JPM's ratings continue to reflect its dominant domestic	
franchise as well as its solid and growing international franchise in investment	
banking and commercial banking. Capital remains sound and compares well with 	
global peers, providing the bank with sufficient cushion to absorb a material 	
idiosyncratic loss event. Fitch believes JPM continues to be well prepared to 	
meet the minimum standards under Basel III. 	
	
Like other global trading and universal banks (GTUBs), the complexity of JPM's 	
operations makes it difficult to fully assess the risk exposure. This trading 	
loss is precisely the kind of risk factor inherent in the GTUB business model. 	
Fitch believes JPM, like other GTUBs, is in a highly confidence sensitive 	
business and the longer-term implications for the firm's reputation are not yet 	
known. As a result, Fitch believes JPM's ratings remain at heightened risk for 	
downgrade until the firm's risk governance practices, appetite, oversight and 	
reputational impact can be further reviewed. 	
	
In addition, ongoing volatility and further losses are likely to arise from 	
these positions as the firm unwinds them, creating some uncertainty. The firm's 	
Value at Risk (VaR) methodology was also changed in first-quarter 2012 (1Q'12) 	
but subsequently reverted back to the original methodology. This resulted in a 	
near doubling of VaR to $170 million, from 4Q'11 VaR of $88 million. The 	
variance emanated from the CIO VaR and a negative $47 million diversification 	
benefit. Fitch believes this also highlights some problems with modeling related	
to this portfolio. 	
	
Resolution of the Rating Watch Negative will conclude upon a further review of 	
how JPM has addressed what Fitch views to be risk management and oversight 	
deficiencies that allowed such a loss to occur. Fitch will also attempt to 	
assess the future earnings and capital impact from these exposures. Fitch will 	
also review the potential implications for market confidence in JPMand 	
reputational damage as a result of this loss on both its liquidity profile and 	
counterparty and dealings. 	
	
Fitch believes the Rating Watch resolution could result in a further downgrade 	
of one notch if the risks are not appropriately sized and addressed. The 	
complexity and opacity of these positions may also result in lingering concerns 	
around the firm.	
	
A return to a Stable Outlook will be dependent upon Fitch's ability to gain 	
comfort with the risk management concerns, potential ongoing nature of these 	
synthetic credit positions and volatility they may create, as well as the 	
reputation issues raised. 	
	
Fitch has placed all of the ratings below (with the exception of the short-term 	
and commercial paper ratings) on Rating Watch Negative. 	
	
Fitch downgrades and affirms JPMorgan's ratings as follows:	
	
JPMorgan Chase & Co	
--Long-term IDR to 'A+' from 'AA-'; 	
--Long-term senior debt to 'A+' from 'AA-'; 	
--Long-term subordinated debt to 'A' from 'A+';	
--Preferred stock to 'BBB-' from 'BBB';	
--Short-term IDR to 'F1' from 'F1+';	
--Commercial paper to 'F1' from 'F1+';	
--Viability to 'a+' from 'aa-';	
--Market linked securities to 'A+-emr' from 'AA-emr'.	
	
JPMorgan Chase Bank N.A.	
--Long-term deposits to 'AA-' from 'AA';	
--Long-term IDR to 'A+' from 'AA-'; 	
--Long-term senior debt to 'A+' from 'AA-'; 	
--Long-term subordinated debt to 'A' from 'A+';	
--Short-term IDR to 'F1' from 'F1+';	
--Short-term debt to 'F1' from 'F1+';	
--Short-term deposits at `F1+';	
--Viability to 'a+' from 'aa-';	
--Market linked long-term deposits to 'AA-emr' from 'AAemr';	
--Market linked securities to 'A+emr' from 'AA-emr'.	
	
Chase Bank USA, N.A.	
--Long-term deposits to 'AA-' from 'AA';	
--Long-term IDR to 'A+' from 'AA-'; 	
--Long-term senior debt to 'A+' from 'AA-'; 	
--Long-term subordinated debt to 'A' from 'A+';	
--Short-term IDR to 'F1' from 'F1+';	
--Short-term debt to 'F1' from 'F1+';	
--Short-term deposits at `F1+';	
--Viability to 'a+' from 'aa-'.	
	
Custodial Trust Co.	
--Market linked long-term deposits to 'AA-emr' from 'AAemr';	
--Long-term IDR to 'A+' from 'AA-'; 	
--Short-term IDR to 'F1' from 'F1+';	
--Viability to 'a+' from 'aa-'.	
	
JPMorgan Bank & Trust Company, National Association	
--Long-term deposits to 'AA-' from 'AA';	
--Long-term IDR to 'A+' from 'AA-'; 	
--Short-term IDR to 'F1' from 'F1+';	
--Short-term deposits at `F1+';	
--Viability to 'a+' from 'aa-'.	
	
JPMorgan Chase Bank, Dearborn	
--Long-term deposits to 'AA-' from 'AA';	
--Long-term IDR to 'A+' from 'AA-'; 	
--Short-term IDR to 'F1' from 'F1+';	
--Short-term deposits at `F1+';	
--Viability to 'a+' from 'aa-';	
	
Bear Stearns Companies LLC	
--Long-term IDR to 'A+' from 'AA-'; 	
--Long-term senior debt to 'A+' from 'AA-'; 	
--Long-term subordinated debt to 'A' from 'A+';	
--Short-term IDR to 'F1' from 'F1+';	
--Market linked securities to 'A+-emr' from 'AA-emr'.	
	
J.P. Morgan Securities LLC	
--Long-term IDR to 'A+' from 'AA-'; 	
--Short-term IDR to 'F1' from 'F1+'.	
	
JPMorgan Clearing Corp (formerly Bear Stearns Securities Corp)	
--Long-term IDR to 'A+' from 'AA-'; 	
--Short-term IDR to 'F1' from 'F1+'.	
	
Banc One Financial LLC	
--Short-term IDR  to 'F1' from 'F1+';	
--Short-term debt to 'F1' from 'F1+'.	
	
Bank One Capital Trust III	
Bank One Capital Trust VI	
Chase Capital II	
Chase Capital III	
Chase Capital VI	
First Chicago NBD Capital I	
JPMorgan Chase Capital X through XXVIII	
--Preferred stock to 'BBB' from 'BBB+'.	
	
Bank One Corp	
--Long-term subordinated debt to 'A' from 'A+'.	
	
J.P.Morgan & Co., Inc.	
--Long-term senior debt to 'A+' from 'AA-'; 	
--Long-term subordinated debt to 'A' from 'A+'.	
	
Morgan Guaranty Trust Co. of New York	
--Long-term senior debt to 'A+' from 'AA-'.	
	
NBD Bank, N.A. (MI)	
--Long-term subordinated debt to 'A' from 'A+'.	
	
Providian National Bank	
--Long-term deposits to 'AA-' from 'AA'.	
	
Washington Mutual Bank	
--Long-term deposits to 'AA-' from 'AA'.	
	
Collateralized Commercial Paper Co., LLC	
--Short-term debt to 'F1' from 'F1+'.	
	
The following ratings were affirmed:	
	
JPMorgan Chase & Co.	
--Support at '1';	
--Support Floor at `A';	
--Long-term debt guaranteed by TLGP at `AAA'.	
	
JPMorgan Chase Bank N.A.	
--Support affirmed at '1';	
--Support Floor at `A'.	
	
Chase Bank USA, N.A.	
--Support affirmed at '1', rating;	
--Support Floor at `A' rating.	
	
Custodial Trust Co.	
--Support at '1'.	
	
JPMorgan Bank & Trust Company, National Association	
--Support at '1';	
--Support Floor at `A'.	
	
JPMorgan Chase Bank, Dearborn	
--Support at '1';	
--Support Floor at `A'.

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