Royal Bank of Canada and 14 other institutions see ratings downgraded by Moody's
One of the world's most influential rating agencies has downgraded 15 global banks. The list includes Canada's largest financial institution—the Royal Bank of Canada.
Moody's Investors Service reduced the Royal Bank's long-term deposit rating to Aa1 with a stable outlook from Aa3.
Many of the world's most familiar names in banking also saw their ratings reduced.
"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", Moody's Global Banking managing director Greg Bauer said in a statement. "However, they also engage in other, often market leading business activities that are central to Moody's assessment of their credit profiles. These activities can provide important 'shock absorbers' that mitigate the potential volatility of capital markets operations, but they also present unique risks and challenges."
Downgrades went to the Bank of America, JPMorgan Chase & Co., Citigroup Inc., Citibank N.A., The Goldman Sachs Group Inc., Goldman Sachs Bank USA, Credit Suisse AG, HSBC Holdings Inc., HSBC Bank plc, Morgan Stanley Bank, Barclays plc, and Deutsche Bank AG.
Other downgrades went to UBS AG, Societé Generale, Credit Agricole S.A., BNP Paribas, and Royal Bank of Scotland Group plc.
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