Moody’s Investors Service said it has concluded its review of eight large U.S. banking groups.

Moody’s said based on its updated views on U.S. government support and standalone bank considerations, it lowered by one notch the senior holding company ratings of Morgan Stanley, Goldman Sachs, JPMorgan and Bank of New York Mellon. Moody’s confirmed the senior holding company ratings of Bank of America, Citigroup, State Street, and Wells Fargo.

Moody’s lowered the standalone baseline credit assessments (BCA) of Bank of New York Mellon and State Street Bank and Trust, both to a1 from aa3 to reflect the long-term profitability challenges facing these highly-rated custodian banks. The rating agency also raised the standalone BCAs of both Bank of America and Citibank to baa2 from baa3 to reflect positive changes in the banks’ credit profiles including declining legacy exposures and strengthening capital.

“We believe that U.S. bank regulators have made substantive progress in establishing a credible framework to resolve a large, failing bank,” said Robert Young, managing director. “Rather than relying on public funds to bail-out one of these institutions, we expect that bank holding company creditors will be bailed-in and thereby shoulder much of the burden to help recapitalize a failing bank.”

To read Moody’s full news release click here.