BAC Capital Advisors, the parent of BAC Mortgage, is downgraded from AA to AA+.
The bank earned a “bad” grade on the agency’s ratings agency ratings in its credit rating for Equifax, its credit report says.
BAC is one of the largest mortgage lenders in the U.S. and a major player in the mortgage lending market.
The bank is a “top priority” for the Federal Deposit Insurance Corporation, the agency said in a statement.
BIC Capital, another major player, is also downgraded, but did not specify how.
Bank of New York Mellon, another mortgage lender, also fell a notch, but its ratings remained stable.
The ratings of both firms are the highest ever for a mortgage lender.
The agency’s report says the agency concluded that BAC’s credit rating was “generally considered satisfactory.”
BAC, which was founded in 1879, has grown from $5.6 billion in 2013 to $14.4 billion in 2017.
The firm is a major investor in the private equity firm Bain Capital and has a $6.7 billion loan portfolio.
Bank officials said the bank will continue to focus on the credit needs of consumers.
The move comes as some banks have been struggling with rising defaults and an overall shortage of home loans.
The Associated Press contributed to this report.