NEW YORK — Fitch Ratings has downgraded its assessment of America’s biggest bank, JPMorgan Chase & Co.
Fitch says the size of the loss is manageable but the risk it brings is not. It says the magnitude of the loss and JPMorgan’s hedging position imply a lack of liquidity. It also raises questions about JPMorgan’s practices, oversights and other key issues.
Fitch says JPMorgan’s risk to its reputation and governance no longer merit an “AA-” rating and lowered its long-term issuer default rating one notch to “A+”, still investment-grade.
It placed the New York company on review for possible future downgrades.