BAC

BAC Bank of America: Fitch places Bank of America’s Individual Rating on rating watch positive Fitch placed its ‘D’ Individual ratings for Bank of America and its operating subsidiaries on Rating Watch Positive. Fitch has affirmed the Issuer Default Ratings (IDRs) of BAC and its subsidiaries, which are derived from U.S. government support and continue to carry a Stable Rating Outlook. Ratings of long and short-term deposits, long-term and short-term debt, and subordinated debt (with the exception of First Republic Bank are affirmed… BAC’s overall risk profile has begun to improve, with the potential for requiring additional government support or needing to omit dividends on preferred stock beginning to recede. Accordingly, Fitch has upgraded the preferred stock rating of BAC to ‘BB-’ from ‘B.’ At the same time, Fitch has placed all preferred and trust preferred ratings of BAC and its affiliates on Rating Watch Positive. Earnings remain under pressure, as BAC posted a narrow loss to common shareholders in the most recent quarter after noncash and nonrecurring items are factored out. Asset quality problems remain severe, with loan loss provisions remaining high. However, with a recent slower rate of deterioration in problem assets the pace of reserve build has begun to decelerate, which could indicate the potential for a near-term peak in problem assets.