S&P Global Ratings has upgraded its ratings outlook for JPMorgan Chase & Co to positive from stable after the megabank’s “superior resilience to the tough operating environment amid a sharp increase in interest rates.”
JPMorgan Chase’s
JPM,
creditworthiness has reaped gains disproportionately from secular trends compared to its peers through its efforts to consolidate its business and operate under an increased regulatory regime.
“In 2023, JPM further expanded its leading market shares across its diverse franchise, while demonstrating superior resilience to the tough operating environment amid a sharp increase in interest rates,” said S&P analyst Stuart Plesser.
S&P reiterated its A-/A-2 holding company and A+/A-1 operating company ratings for the bank, but it could raise its ratings by one notch if the bank maintains its “peer-leading “ performance while sustaining its capital buffers and “prudent risk posture,” Plesser said.
“As the world’s top investment bank, JPM continues to grow share in advisory and markets, while also gaining lending treasury management, and deposit clients,” Plesser said. “Additionally, it has built top-tier market positions in U.S. consumer lending, including credit cards, residential mortgages, and auto loans, where scale is required to compete effectively.”
JPMorgan Chase’s stock was down by 0.5% in premarket trading on Tuesday. The stock has risen 17% so far in 2024, ahead of the 9.9% rise by the S&P 500
SPX.
This post was originally published on Market Watch
