Bank of America, Morgan Stanley and Citigroup could be downgraded next year, according to a Dec. 6 report published by Nomura Securities International  that warned that downgrades for any of the three could impact their ability to operate readily in the commercial paper and repo markets and chase up funding costs.

“While its not a done deal, at present Bank of America, Citi & Morgan Stanley appear most at risk of being downgraded to tier 2 status ('A-2','P-2' short-term ratings),” according to analysts at Nomura.

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