NEW YORK—Credit-rating agency Moody's on Thursday said it has placed the long-term ratings of American Express Co. and American Express Travel Related Services Co. Inc. on review for a possible downgrade.
Moody's said its action reflects concerns over the companies' asset quality trends and lending exposures, particularly within areas of the U.S. that have experienced sharp home price declines.
Moody's rates American Express' senior unsecured debt at "A1" and American Express Travel and its rated operating subsidiaries at "Aa3." Both ratings are investment grade.
Moody's affirmed the short-term ratings for American Express and its subsidiaries.
"Although Amex has made great strides in diversifying its spending mix away from its historical reliance on corporate travel and entertainment, the company's revenue and earnings profile remains heavily weighted towards the U.S. market in terms of both spending volumes and credit exposure," Moody's said in a statement.
