Grim Future for US Economy

The ratings agency lowered the senior debt rating of Bank of America two levels to Baa1 (equvalent of S&P's BBB+) from A2 (A). Long-term senior ratings were kept at negative, indicating that Moody's may consider another cut. Short-term debt for the bank was cut from Prime 1 (A-1+) to Prime 2 (A-2).
 
Wells Fargo's senior debt went down a notch from A1 (A+) to A2 (A), with its senior long-term ratings kept at negative. Citigroup's short-term ratings went from Prime 1 (A-1+) to Prime 2 (A-2), but the agency confirmed its long-term rating of A3 (A-) and Citibank NA's A1 (A+) long-term and Prime 1 (A-1+) short-term ratings.
 
Moody's explained its decision saying that the federal government is “more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled, as the risks of contagion become less acute."

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