American Express Credit Rating Might Be Downgraded By Moody's

American Express Credit Rating Might Be Downgraded By Moody'sThe credit rating of card giant American Express might be downgraded by Moody's, following disappointing financial results. Last month, the provider posted a 38% drop in second quarter profits, with unpaid loans

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American Express Credit Rating Might Be Downgraded By Moody’sThe credit rating of card giant American Express might be downgraded by Moody’s, following disappointing financial results.

Last month, the provider posted a 38% drop in second quarter profits, with unpaid loans rates on the up.

AmEx also says that its earnings growth target now stood at 4%, down from its previous figure of 6%.

In response, Moody’s said that a downgrade might now be forthcoming.

“Today’s rating action reflects Moody’s concerns over AmEx’s asset quality trends and lending exposures, particularly within geographic markets in the US that have experienced sharp home price declines,” says a statement from the ratings agency. “Broad economic weakness in the US, heavy consumer debt burdens, and home price erosion have also combined to place a damper on AmEx’s card-member spending growth in the US.”

Currently, AmEx’s unsecured debt is rated A1 by Moody’s – while its Travel unit and other subsidiaries are graded Aa3.

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