Moody's concludes reviews on 13 banks

Moody's Investors Service said it concluded its reviews on 13 global investment banking groups. These reviews began on March 17 following the publication of Moody's new bank rating methodology and also reflect revisions in Moody's government support assumptions for these banks.

Among others, the agency took the following actions:

• Upgraded Bank of America Corp.’s long-term issuer rating and senior debt to Baa1 from Baa2 and noncumulative preferred stock to Ba2(hyb) from Ba3(hyb) and affirmed its senior subordinated debt and subordinated debt at Baa3;

• Upgraded Citigroup Inc.’s senior debt to Baa1 from Baa2 and noncumulative preferred stock to Ba2(hyb) from Ba3(hyb) and affirmed its subordinated debt at Baa3;

• Upgraded Goldman Sachs Group, Inc.’s long-term issuer rating and senior debt to A3 from Baa1, structured senior debt to A3 from Baa1 and noncumulative preferred stock to Ba1(hyb) from Ba2(hyb) and affirmed its subordinated debt at Baa2;

• Upgraded HSBC Bank plc’s long-term issuer rating and senior debt to Aa2 from Aa3 and affirmed its subordinated debt at A2;

• Upgraded JPMorgan Chase & Co.’s noncumulative preferred stock to Baa3(hyb) from Ba1(hyb) and affirmed its long-term issuer rating at A3 and subordinated debt at Baa1;

• Upgraded Morgan Stanley’s long-term issuer rating and senior debt to A3 from Baa2, subordinated debt to Baa2 from Baa3 and noncumulative preferred stock to Ba1(hyb) from Ba3(hyb); and

• Downgraded Royal Bank of Scotland Group plc’s senior debt to Ba1 from Baa2 and upgraded its preferred stock and junior subordinated debt to Ba3(hyb) from B1(hyb), noncumulative preferred stock to B1(hyb) from B2(hyb), subordinated debt to Ba3 from B1.

The agency said its new methodology includes a number of elements that it has developed to help accurately predict bank failures and determine how each creditor class is likely to be treated when a bank fails and enters resolution.

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