Moody’s, the credit rating agency, has warned that it may cut the credit ratings of 17 banks, including Morgan Stanley, UBS and Credit Suisse. Nine of the banks are based in Europe and include Barclays, HSBC and Royal Bank of Scotland.
Alexander Potter, banking specialist at Berenberg Bank, told the BBC that the riskiness of these banks has already been reflected in prices for the banking sector on the credit default swap market for some time.
Mr Potter is quoted as saying: “This follows a similar review by S&P and credit spreads highlight the fact the market is already, in most cases, well ahead of the slow-moving ratings agencies.”
February 17, 2012
