European banks are bracing for a wave of ratings downgrades in coming weeks that could intensify pressure on the fragile industry and further undercut recent efforts to defuse the Continent's long-running financial crisis the Wall St Journal reports.
Under pressure from banks, Moody's Investors Service said Friday that it is delaying until early May its highly anticipated decision on whether to downgrade the credit ratings of 114 banks in 16 European countries.
Moody's announced the review in February, saying it was needed in light of the banks' weak conditions and the tough environment in which they're operating. Moody's said in a statement it is "taking an appropriately deliberate approach during this review process and will conclude when it is confident that all relevant information has been received and processed."
It had planned to start unveiling the decisions this week.