Seventeen Global Banks May Be Downgraded By Ratings Agency

On Thursday, ratings agency Moody’s warned that it may cut the credit ratings of 17 global and 114 European financial institutions in another sign that the impact of the euro zone government debt crisis is spreading throughout the global financial system. The agency cited fragile funding conditions, increased regulatory burdens, and a tougher economic environment for its reviews of banks and securities firms.

Seventeen Global Banks May Be Downgraded By Ratings Agency

The long-term ratings and standalone credit assessments of Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Royal Bank of Canada are being reviewed by the agency and the long-term ratings and standalone credit review of European banks includes Barclays, BNP Paribas, Credit Agricole, Deutsche Bank, HSBC, Royal Bank of Scotland, and Societe Generale.

“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.

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