Moody’s Downgrades Fidelity Parent’s Senior Debt

Moody’s Investors Service has downgraded the long-term senior debt of FMR, the parent company of Fidelity, from A2 to A1, citing profit margins not meeting expectations.

As of December 2008, the company’s gross debt was $8.3 billion, including $2.1 billion in debt owed to outside investors. The remaining $6.2 billion was internal debt.

Nonetheless, Fidelity spokeswoman Anne Crowley told The Wall Street Journal the downgrade and the debt levels are not a concern since the company is “on solid financial footing” with a “very strong balance sheet” and continued plans to “invest significantly to further develop our businesses.”