UBS AG, Credit Suisse and Morgan Stanley’s credit ratings may be cut by as many as three levels by Moody’s Investors Service, which is reviewing 17 banks and securities firms with global capital markets operations, Bloomberg writes..
Goldman Sachs Group, Deutche Bank , JPMorgan Chase and Citi are among companies that may be downgraded by two levels, Moody’s said in a statement, adding that the “guidance is indicative only.” Moody’s today cut some European insurers’ ratings based on risks stemming from the region’s sovereign debt crisis.
The potential downgrades, which may raise borrowing costs and force banks to increase collateral, put the ratings company at odds with bond investors, who are sticking with bets that new capital rules and trading limits will make the financial firms safer in the long run. Funding costs have climbed for banks worldwide as Greece’s debt woes roil markets….
Find out more at http://www.bloomberg.com/news/2012-02-15/bank-firm-ratings-may-be-cut-by-moody-s.html
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