Moody's warns of downgrade of 17 global banks, securities firms
Global financial institutions are in the spotlight following a warning from the US rating agency Moody's.
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Global financial institutions are in the spotlight following a warning from the US rating agency Moody’s.
Moody’s has warned that it may cut credit ratings of 17 global and 114 European financial institutions in another sign that the impact of the euro zone government debt crisis may be spreading throughout the global financial system.
The US rating agency said its action on financial institutions from 16 European nations reflected the impact of the debt crisis and deteriorating creditworthiness of its governments, citing more fragile funding conditions, increased regulatory burdens and a tougher economic environment for its review of banks and securities firms with global reach.
Moody’s has said it was reviewing the long-term ratings and standalone credit assessments of Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Royal Bank of Canada.
The long-term ratings and standalone credit review of European banks include Barclays, BNP Paribas, Credit Agricole, Deutsche Bank, HSBC, Royal Bank of Scotland and Societe Generale.
Moody’s said it was also extending the reviews of the long term ratings and standalone credit assessments of Credit Suisse, Macquarie, Nomura and UBS.
“Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions,” Moody’s said in a statement.
Last Monday, Moody’s cut the ratings of six European nations including Italy, Spain and Portugal, warning it could strip France, Britain and Austria of their top level AAA grade.
Robert McCambridge
Thu, 16 Feb 2012
Thu, 16 Feb 2012
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Moody's warns of downgrade of 17 global banks, securities firms
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