By Lee Wagstaff
Moody’s has downgraded a total of 15 major international banks, including three renowned lenders in the UK.
HSBC, Barclays and the Royal Bank of Scotland were all marked down, while Lloyds TSB also had its rating cut in a separate announcement by the organisation.
Moody’s said it needed to change the ratings to reflect the tough economic climate and tighter financial regulations.
In the US, Citigroup and the Bank of America were also downgraded, while Goldman Sachs, Morgan Stanley, Royal Bank of Canada, Credit Suisse, UBS, BNP Paribas, Credit Agricole, Societe Generale, Deutsche Bank and JP Morgan Chase were included too.
“All of the banks affected by today’s actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities,” commented Moody’s global banking managing director Greg Bauer.
Unsurprisingly, the move has dented investor confidence around the world and the UK’s FTSE 100 will open up to 56 points down this morning (June 22nd) on the back of the news, Reuters reports.