Sunday, November 11, 2012

Largest USA Banks Ratings: U.S. Bancorp, Wells Fargo, Capital One Tops, Goldman Sachs Last



Big Banks Ratings Through September 30, 2012

The Largest USA Banks have reported third quarter 2012 financial results, the financial performance for the QE 9-30-12 and financial position at 9-30-12. There were several changes in the quarterly ratings: 4 downgrades and no upgrades. The median score is "D" and the average score for QE September 2012 is "C".

Above Average U.S. Bancorp is the sole leader at "A", followed by Wells Fargo and Capital One at "A-". These 3 banks have moved positively beyond the 2008 financial crisis. PNC Financial Services is next at "B+", followed by Bank of New York Mellon at "B" and Bank of America at "B-".

Below Average JPMorgan Chase is next at "D", which is the median rating. Citigroup follows with an "E+", below the median rating of "D". Farther below is Morgan Stanley at "E-". Trailing the field is Goldman Sachs, continuing at a dismal F-.

Rating, Bank, Change
A     U.S. Bancorp
A-    Wells Fargo
A-    Capital One
B+   PNC Financial Services
B     BNY Mellon
B-    Bank of America => (downgrade from B)
D     JPMorgan Chase
E+   Citigroup => (downgrade from D-)
E-    Morgan Stanley => (downgrade from E+)
F-    Goldman Sachs => (downgrade from G+)
C     Average

Largest USA Banks Rankings The 10 Largest USA banks ratings are presented below in a percentage format. The ratings range from A+ (100%) to G- (0%).



Based on fundamental analysis of both financial position and performance on a short-term and long-term basis, the largest 10 USA banks rankings have been updated with a composite score. There is no subjectivity involved from quarter to quarter, just objective data. The ratings are the result of the output from a model, with the latest quarterly financial statement data input.

The score can range from a high of A+ to a low of G-, a total of 21 tiers. The median score is D in this rating system. The average score can vary each quarter.

Financial position is weighted more than financial performance. Therefore, the rating is primarily a gauge of financial position, balance sheet strength, which indicates the ability of the bank to withstand a downturn in financial performance from either internal or external events. The rating is secondarily a gauge of financial performance, both short-term and long-term. A measure of financial safety and soundness, not future financial performance, is the predominant intent of the ratings.

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