JPMorgan Chase & Co. (JPM - Free Report) recently received rating action from Moody's Investors Service, an arm of Moody's Corporation. The rating agency affirmed the ratings of the bank and kept the outlook stable. The company’s A3 long-term senior debt rating and Aa2 deposit rating has been affirmed.
Reasons for the Affirmation
The ratings are based on JPMorgan’s earnings strength and performance of different business lines. Also, the company’s great liquidity and capital position boosted its credit profile.
JPMorgan boosts the most diversified earnings, which has assisted it to absorb certain rare expenses relating to litigations and legal matters, without hampering its regular business activities.
The dangers inherent in JPMorgan's Corporate and Investment Bank (CIB) are included in the ratings. However, the company’s earnings from consumer, commercial and wealth management operations have helped to partially offset CIB results.
JPMorgan’s business mix has helped it to maintain one of the maximum baseline credit assessments (a3).
What Could Make Moody's Change the Ratings?
JPMorgan’s ratings could be revised higher by the rating agency if the company maintains its leading position even in a more competitive setting.
On the flip side, JPMorgan's baseline credit assessment could be downgraded if there is a major failure in risk control.
Shares of JPMorgan have gained 23.5% in the last six months, outperforming the 17.4% rally for the industry it belongs to.
Currently, the stock carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Woori Bank (WF - Free Report) Zacks Consensus Estimate have been revised 5.6% upward for the current year, in the past 30 days. Also, its shares have rallied 37.1%, year to date. It carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Republic Bancorp (RBCAA - Free Report) witnessed an upward earnings estimate revision of 4.7% for the current year, in the last 30 days. Also, its shares have gained 4.2%, so far this year. It sports a Zacks Rank of 1.
First Bancorp’s (FBNC - Free Report) Zacks Consensus Estimate for the current year has been revised nearly 3% upward over the last 30 days. Its shares have gained 39% year to date. It also carries a Zacks Rank of 1.
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