Moody’s warned that it could downgrade the credit ratings of 131 institutions, including 17 banks and securities firms that have global operations as it reviews their long-term ratings and standalone credit assessments.
Reuters reported Thursday that the agency said Credit Suisse, UBS and Morgan Stanley could fall by as much as three notches, while Barclays, BNP Paribas, Credit Agricole, Deutsche Bank, HSBC Holdings, and Goldman Sachs could lose two. On the hook for a single-level decrease are Bank of America and Nomura.
In a statement, it said, “Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions.”