Credit ratings cut for 15 top banks (From Redhill And Reigate Life)
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Credit ratings cut for 15 top banks
10:48pm Thursday 21st June 2012 in National News © Press Association 2013
Moody's lowered the ratings of some of the world's largest banks, including Citigroup
Moody's Investors Service has lowered the ratings of some of the world's largest banks, including Bank of America, JPMorgan Chase, Citigroup and Goldman Sachs.
The ratings agency said the banks were downgraded because their long-term prospects for profitability and growth are shrinking.
The agency said it was especially concerned about banks with significant capital market activities during a time of increased volatility in markets.
A downgrade usually means that it becomes more costly for banks to raise money by selling debt. Investors demand higher interest for riskier debt, which is what the downgrades represent.
Moody's had said in February that it was considering downgrading the credit ratings of major banks.
