Member Article

Moodys to announce UK bank downgrades

Credit ratings agency Moody’s is set to announce downgrades to a number of major world banks, including UK lenders, as early as tonight.

According to Sky News, the confirmation is expected shortly after the US markets close, with the potential to add billions of pounds to the funding costs of the institutions affected.

RBS, Barclays and HSBC are believed to be amongst those institutions under scrutiny, as they face increasing pressure from the global economic crisis.

Two of France’s biggest banks, Societe Generale and BNP Paribas are also in danger of a downgrade, while US giants Goldman Sachs and Morgan Stanley could too be affected.

The move, which could hit up to 18 lenders as part of a wider reassessment of the health of the global banking industry by Moodys.

In recent months banks a number of European banks have been downgraded as the problems on the Continent intensify, including Santander UK. This cut triggered concerns over the safety of customers’ savings, which the bank was quick to dismiss.

The next round of cuts could put many other UK banks in line with Santander UK, and are expected to range from between one and two notches, depending on the institution in question.

This was posted in Bdaily's Members' News section by Ruth Mitchell .