JPMorgan credit rating downgraded

WASHINGTON - Crisis-hit US bank JPMorgan Chase received a credit rating downgrade from Fitch and received a warning from Standard & Poor's on Friday, a day after the bank revealed a $2 billion (S$2.5 billion) trading loss.

The Fitch downgrade was one notch, from AA- to A+, while S&P adjusted the bank's ratings outlook to negative.

Fitch said JPMorgan's losses were manageable, but raised a red flag about the bank's health and its risk taking.

"The magnitude of the loss and ongoing nature of these positions implies a lack of liquidity," the ratings agency said.

"It also raises questions regarding JPM's risk appetite, risk management framework, practices and oversight; all key credit factors."

Fitch warned another downgrade could come if the crisis is not well handled.

S&P meanwhile said it did not believe the losses were consistent with the firm's "sound risk management practices."