MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said Bank of
America Corp.'s second-quarter earnings were within its range of expectations
considering the economic environment, and therefore do not affect the ratings on
the company.
The nation's second-largest bank by assets said Monday its net income
dropped more than 40 percent to $3.4 billion compared with last year, as
provision for credit losses more than tripled, reflecting weakness in consumer
and commercial portfolios tied to the housing market.
But, earnings improved on a sequential-quarter basis, as market
disruption-related write-downs decreased to $1.2 billion from $2.8 billion in
the first quarter.
S&P said it expects market disruption-related write-downs to continue to
decrease over the next few quarters. However, this will be offset by increased
credit costs related to BofA's consumer-related portfolios.
S&P has an 'AA' rating with a negative outlook, and an 'A-1+' rating on
BofA.
TFN.newsdesk@thomson.com
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