Moody's downgrades Bank of America

Reuters

(Reuters) - Moody's Corp <MCO.N> on Wednesday downgraded Bank of America Corp's <BAC.N> 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 <C.N> and Wells Fargo & Co <WFC.N> 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)