Bloomberg reported Bank of America’s, Goldman Sachs’ and Citigroup’s credit grades were cut by Fitch Ratings as the impact of financial regulation and market turmoil weighed on the industry.

According to the report, each lenders’ long-term issuer default ratings were cut one level to A from A+. Overseas, Barclays, Credit Suisse, Deutsche Bank and BNP Paribas also had their grades lowered.
 
As reported, Moody’s Investors Service cut banks in September, citing a lower probability that the U.S. will support the industry in an emergency. Standard & Poor’s lowered ratings last month. Lenders including Bank of America and Citigroup have said they may have to post billions of dollars in collateral and face higher funding costs in the event of downgrades.
 
Bloomberg reported Bank of America said last month that a one-level downgrade by all rating companies could amount to $5.1 billion in collateral demands as of Sept. 30 and that a one-level rating reduction for Citigroup’s deposit-taking unit could trigger an estimated $4 billion of collateral payments and other cash obligations, the company said in a regulatory filing.