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Moody's affirms JPMorgan ratings, lowers Chase Bank's baseline credit assessment

Moody's on Dec. 6 affirmed JPMorgan Chase & Co.'s issuer and long-term senior debt ratings of A3, as well as its subordinated debt rating of Baa1.

It also assigned the company's junior subordinated regular bonds and debentures a rating of Baa2 (hyb), in anticipation of seven capital trusts' Dec. 18 liquidation.

The New York-based company has sufficiently "robust profitability" that it can absorb "occasional" legal, regulatory and restructuring hits, Moody's wrote. And, "in contrast to many peers," it does this without the need to establish noncore units or record extraordinary charges. The ratings take into account the corporate and investment division's inherent risks, as well as the offsetting effect of stable earnings from the consumer, commercial and wealth management segments.

Moody's also affirmed the ratings of several of JPMorgan's subsidiaries, including JPMorgan Chase Bank NA's Aa3 issuer and senior debt ratings and Aa2 long-term deposit rating. Chase Bank USA NA's issuer rating was affirmed at Aa3 and its counterparty risk assessment at Aa2(cr). Its baseline credit assessment, however, was lowered to "baa3" from "baa2", to reflect its reduced assets.

The outlook on all ratings is stable.