S&P; cut ratings on several BankAmerica issues.
Affected were commercial paper from the bank holding company and its Bank of America unit, as well as debt issues supported by Bank of America letters of credit. All were dropped to A1 from A1+. Standard & Poor’s said the downgradings “reflect the company’s weak earnings resulting from a substantial amount of non-performing loans and associated charge-offs.” The rating firm’s move follows the bank’s announcement that it expected little or no second-quarter profit. A second rating agency, Moody’s Investors Service, said it was reviewing its ratings on a number of BankAmerica securities in light of the bad earnings news.