Moody’s released their assessment of the credit ratings for five of the biggest U.S. financial firms, and the news isn’t good. Every one of the firms was downgraded.

From top to bottom, they read like this:

Goldman Sachs was downgraded two notches from A3 to A1.  Goldman Sachs said its costs could hit $2.2 billion.

J.P Morgan was downgraded two notches, from Aa3 to A2. The firm said it could lose $3.45 billion.

Morgan Stanley was downgraded two notches, from A2 to Baa1. Morgan Stanley said it could pay as much as $9.6 billion.

Citigroup was downgraded two notches from A3 to Baa2. The firm estimated it would lose $2.1 billion.

Bank of America was downgraded one notch from Baa1 to Baa2. Bank of America said it could lose $2.7 billion.

Baa2, where Citigroup and bank of America now reside, is only two notches above junk status, which is the grade bond buyers eschew buying.  All of these firms received bailout money from the federal government.

Moody's Global Banking Managing Director Greg Bauer said, "All of the banks affected by today's actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities.”