Moody's downgrades Bank of America

Reuters

(Reuters) - Moody's Corp on Wednesday downgraded Bank of America Corp's debt ratings because the government appears less likely to aid the lender if it verged on failure.

Moody's downgraded the largest U.S. bank by assets long-term senior debt rating to "Baa1" from "A2" and its short-term debt rating to "Prime 2" from "Prime 1."

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Moody's said the long-term outlook on the bank's senior ratings remains negative.

In June, Moody's placed Bank of America, Citigroup Inc and Wells Fargo & Co under review for a potential downgrade.

Bank of America shares declined 4.5 percent in midday trading after the downgrade was announced.

(Reporting by Joe Rauch; editing by Gunna Dickson)