Morgan Guaranty Loses Stellar ‘Aaa’ Moody’s Rating
<i> Associated Press</i>
NEW YORK —
In a symbolic blow to one of the oldest and most respected names in U.S. finance, Morgan Guaranty Trust Co. lost its coveted “Aaa” bond credit rating Tuesday from Moody’s Investor Service.
The banking subsidiary of J.P Morgan & Co., namesake of the fabled financier who bankrolled America’s steel and oil giants, was downgraded one notch to Aa1. Moody’s attributed the move to the hazards in the bank’s trading and emerging markets businesses.
“The impact will be modest,” said PaineWebber analyst Larry Cohen.
Morgan’s shares fell 25 cents to close at $63 on the NYSE.
Moody’s also cut its rating on Bankers Trust New York Corp. debt, citing problems in the bank’s derivatives businesses.
