Business World

Friday 19 January 2018

European banks put on rate watch cut by Moody’s reporters

MOODY’S is reviewing some 114 European banks and financial groups, including many of the top companies, for a possible ratings downgrade because of the euro zone debt crisis.

Germany's Deutsche Bank and Commerzbank were among two of the largest banks named by Moody’s Investors Service.

Britain's HSBC, Royal Bank of Scotland, ING of the Netherlands, Spain's Santander and Italy's Unicredit are also under review.

In France, BNP Paribas, Société Générale, Credit Agricole and Natixis among others will be reviewed.

Moody's Investors Service has put 24 groups in Italy on review, 21 in Spain, 10 in France, nine in Britain, eight in Austria and eight in Denmark, seven in Germany, and six each in Portugal and the Netherlands.

Five companies in Sweden, four in Slovenia, two in Switzerland and one each in Finland, Norway, Belgium and Luxembourg are being looked at.

Moody's said last month that it would likely cut the ratings of several banks, especially in Europe, given the strains in the economy caused by the debt crisis.

It downgraded its sovereign debt ratings on Italy, Spain and Portugal and put France, Britain and Austria on negative outlook last Monday.

Ratings were also cut for Slovenia, Slovakia and Malta, with Moody's saying all nine countries were now more susceptible to increasing financial and macroeconomic risks from the euro area crisis.

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