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S&P lowers credit ratings of 11 banks, revises outlook on HSBC

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Press Trust of India Washington
Last Updated : Jan 19 2013 | 11:03 PM IST

 

Global ratings agency Standard & Poor's lowered the credit ratings of 11 international banks by one or two notches on uncertainty over future performances amid financial turmoil.

The banks are Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Royal Bank of Scotland, UBS and Wells Fargo.

S&P also revised its outlook on British giant HSBC Holdings and a number of its subsidiaries to negative from stable.

"The downgrades and revised outlooks reflect our view of the significant pressure on large complex financial institutions' future performance due to increasing bank industry risk and the deepening global economic slowdown," the ratings agency said in a statement.

But it added that significant government intervention intended to stabilise the banking sector and restore public confidence "may balance these pressures to a large extent."

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The agency had raised earlier this month its "overall assessment of bank industry risk" and believed there would be more volatility in funding markets.

S&P on Friday lowered the senior unsecured debt ratings of Citigroup to 'A' from 'AA-', Goldman Sachs's long- and short-term counterparty credit ratings to 'A/A-1' from 'AA-/A-1+' and Morgan Stanley's counterparty credit rating to 'A/A-1' from 'A+/A-1+'.

It lowered its long-term counterparty credit rating on Bank of America and its senior unsecured debt ratings on JPMorgan Chase & Co. To 'A+' from 'AA-'.

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First Published: Dec 20 2008 | 10:53 AM IST

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