As a result of Standard & Poor's (S&P) reconsidering of the "inclusion of government support in its rating," JPMorgan Chase's (NYSE: JPM ) long-term A credit rating has been revised to "negative" from "stable," S&P said today in a statement. S&P's new rating method applies to banks it views as having "high systemic importance" to the U.S. economy, and takes into account the "evolving resolution framework" of the domestic financial-services industry.
The outlook revision to negative on the non-operating holding company of JPMorgan is based on what Standard & Poor's calls "the evolving nature of extraordinary government support." However, banks considered to have high systemic importance with substantial operations in "supportive countries" in a financial crisis will continue to benefit from extraordinary government support as a factor in S&P's credit ratings.
Standard & Poor's also said it is maintaining the negative ratings outlook on the other seven NOHC companies of banks it considers having high systemic importance in the United States. These include Bank of America, Wells Fargo, Bank of New York Mellon, State Street, Citigroup, Morgan Stanley, and Goldman Sachs.