NEW YORK (CNN/Money) - Moody's Investors Service Wednesday said it was worried enough about weakening profits at J.P. Morgan Chase to possibly cut the financial services company's debt rating.

Moody's put J.P. Morgan's $42.4 billion in debt under review, saying, "Declining activity in capital markets, restructuring expenses and rising credit losses have all contributed to weak profitability..."

While questioning J.P. Morgan's business strategy, the credit rating agency also said the bank's involvement with Enron may hurt its reputation, subject it to greater regulatory scrutiny and expose it to costly lawsuits.

J.P. Morgan (JPM: Research, Estimates) loaned money to the bankrupt energy trader. Several company officers were called before Congress last month because of their alleged role in helping Enron hide debt.

A downgrade could make it more expensive for J.P. Morgan to borrow money during a time when companies are having a harder time raising funds in the bond market. Standard & Poor's made a similar move last week.

Moody's currently rates the company's senior unsecured debt at "Aa3" and its subordinated debt at "A1."

The credit rating agency also found fault with J.P. Morgan's strategy of combining investment banking and commercial banking, saying "growing J.P. Morgan's market share in equities underwriting and trading may be time consuming and expensive."

J.P. Morgan spokeswoman Kristin Lemkau declined to comment on the Moody's review, according to Reuters.

The Moody's report came after the close of trading. J.P. Morgan shares rose 34 cents to $26.88 in the regular session; they are down 35 percent from their 52-week high.