Moody’s Investors Service will this month start cutting the
credit ratings of more than 100 banks, a move that risks pushing up their
funding costs and forcing them to curb lending in a threat to economic growth,
Bloomberg writes.
BNP Paribas SA, France’s biggest lender, Deutsche Bank AG,
Germany’s largest, and New York-based Morgan Stanley are among firms that face
having their short- and long-term debt downgraded to their lowest-ever levels
by Moody’s, the ratings company said in February. The cuts, which would follow downgrades by
Standard & Poor’s and Fitch Ratings last year, could erode profits, trigger
margin calls and leave some firms unable to borrow from money- market funds
that have strict rules on who they can lend to. Without access to funding from
private sources, banks have had to sell assets and reduce lending….
No comments:
Post a Comment