Moody's Investors Service said last week it that was considering cutting the credit ratings of Bankers Trust Co. and J.P. Morgan & Co. because of concerns over the banks' derivatives dealing businesses.
The rating agency said it may cut Bankers Trust Co. and Bankers Trust Delaware's Aa2 rating for long-term deposits and other senior obligations, affecting about $140 million of securities.
Moody's also is looking at the banks' As2 counterparty rating.
The downgrade would not affect the rating on Bankers Trust New York Corp., the holding company for the two banks, Moody's said.
Moody's said it may lower its Aa1 rating on $5.4 billion of J.P. Morgan & Co.'s senior debt, as well as its Aaa counterparty rating on the holding company's Morgan Guaranty Trust Company of New York, because of the risks the bank is taking by expanding its investment banking business.
Both banks issued statements saying rating changes are unwarranted.
