Moody’s Lowers Its Rating of Certain B of A Debt Issues

A major Wall Street credit rating firm has lowered its ratings on about $5.5 billion in short- and long-term debt issued by BankAmerica, the nation’s second-largest bank holding company.

Moody’s Investors Service lowered the ratings slightly on BankAmerica senior subordinated debt, preferred stock, commercial paper and the senior and subordinated debt of BankAmerica Overseas Finance Corp.

Moody’s said it lowered the ratings because of concern about the San Francisco-based company’s Latin American exposure and its near-term profit picture.

BankAmerica lost $518 million in 1986, compared to $337 million the year before, largely because of problem foreign, energy and real estate loans.

Moody’s noted the holding company remained liquid and owned “considerable marketable assets.”

At the same time, Moody’s confirmed its ratings for BankAmerica subsidiaries Bank of America, the nation’s second largest bank; Seafirst Corp., and Seattle-First Bank. The firm upheld its ratings for Bank of America because of its value as a franchise.