Important Takeaways:
- Moody’s sours on banking sector outlooks for Germany, Britain and France
- The credit rating agency Moody’s said on Thursday that it was downgrading its outlook for the banking sector in a number of European countries as weak economies erode profits.
- It changed the outlook to negative from stable for the banking sectors of Germany, Britain, France, Belgium, the Netherlands and Sweden.
- Rising losses for unpaid loans and higher funding costs will chip away at profits, Moody’s said.
- “A deteriorating operating environment with low economic growth and high borrowing costs will hit credit growth as well as loan performance in the largest European countries, particularly in the corporate sector,” said Moody’s analyst Effie Tsotsani.
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The British Pound is suffering losses across the world markets after the announcement by credit house Moody’s of a downgrade in the country’s credit. Continue reading →
The European Stability Mechanism, created in October as a permanent agency of the EU, has already had its credit rating downgraded by Moody’s. Continue reading →
Credit ratings agency Moody’s has issued a statement threatening to cut the United States debt rating if there is no debt deal by government officials to cut the overall debt to GDP ratio. If no deal is reached by the end of the 2013 Congressional legislative session. Continue reading →
The European Union’s Aaa credit rating became endangered on Tuesday when credit ratings agency Moody’s changed the EU’s outlook to “negative.” Moody’s attributed the move to the negative outlook on ratings connected to the EU’s most key contributors to income.
Earlier this year, Moody’s placed Germany, France, the Netherlands and the United Kingdom into a negative economic outlook meaning those individual countries could soon face a downgrade in their credit status. All four countries currently have a Aaa rating. Continue reading →
Germany’s AAA credit rating is in danger of a downgrade after Moody’s changed the outlook for the nation’s credit to negative. The move is a possible first step into downgrading the country’s overall rating.
Moody’s stated that the exit of Greece from the Euro is increasing and the increasing financial decline in Spain. A full bailout of Spain is considered to be more likely as the cost of Spanish bonds remains at a record high. Continue reading →
Moody’s marked down several major banks including Citigroup and Bank of America in the United States and Royal Bank of Scotland, Barclays and HSBC in the United Kingdom. Lloyds of London also had their ratings cut.
In addition to Citigroup and Bank of America, Morgan Stanley, JP Morgan Chase and Goldman Sachs were issued downgrades. Continue reading →
Moody’s cut the credit ratings of Belgian and Dutch banks, attributing the cuts to the current euro zone crisis.
“Dutch banks will face difficult operating conditions throughout 2012 and possibly beyond,” Moody’s told the BBC.
Long-term ratings were cut at least one level with most getting cut two levels. Continue reading →
