Moody’s Investors Service has downgraded the credit ratings of 15 of the world’s biggest banks on Thursday.
The cut was part of a broad review of major financial institutions.
“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,” AFP quoted Greg Bauer, Moody’s global banking managing, as saying.
Among the moves, Moody’s cut JPMorgan’s (JPM.N) long-term senior debt to A2 from Aa3 and assigned it a negative outlook negative, Reuters reported.
It also cut Morgan Stanley’s (MS.N) long-term senior unsecured debt to Baa1 from A2 and also assigned it a negative outlook.
Morgan Stanley had been viewed as the U.S. bank that could suffer the most from a Moody’s downgrade, because of its relatively large trading operation and because of the extent of the cut that Moody’s threatened.
Moody’s announced the review on February 15, saying these global investment banks’ ratings did not capture the evolving challenges of more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions.
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription