87 European banks might cut credit ratingsTuesday, 29 November 2011
Moody's said that 87 banks in 15 European countries may have their credit rating lowered due to their unsecured debts position. All the four major Swedish banks are on the list.
The warning comes in light of concerns about the banks' governments will not be able to afford to take over bad debts.
AdvertisementThe largest numbers of banks at risk are in Spain, Italy, Austria and France. But the risk of downgrade of unsecured claims can extend even outside the EU to places such as Switzerland and Norway, said the statement from Moody's.
All the four major Swedish banks, Nordea, SEB, Handelsbanken and Swedbank are among the 87 listed by Moody's as relevant for the review for credit ratings.
"Moody's believes that the systematic support for bad debt (subordinated debt) in Europe is becoming more and more unpredictable, depending on a combination of the expected change of policy and financial restraint, "the statement said.
For other countries, the numbers of banks affected are: Austria (9), Belgium (3), Cyprus (2), Finland (3), France (7), Italy (17), Luxembourg (3), Netherlands (6), Norway (5), Poland (1), Portugal (2), Slovenia (2), Spain (21) and Switzerland (2).
By Scancomark.se Team
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