Tags: Moodys | Bank | Downgrades | loss

Moody’s Said to Delay Bank Downgrades Amid Crisis, JPMorgan Loss

Monday, 14 May 2012 07:20 AM


Moody’s Investors Service will delay plans to downgrade more than 100 banks as it assesses the effect of JPMorgan Chase & Co.’s trading losses and a greater possibility of a euro breakup, a Moody’s official said.

The Moody’s official declined to be identified as he wasn’t authorized to comment publicly. Moody’s said on April 13 that it would begin downgrading banks, including BNP Paribas SA, France’s biggest lender, Deutsche Bank AG, Germany’s largest, and New York-based JPMorgan and Morgan Stanley by early May.

JPMorgan announced last week it was facing losses of $2 billion related to derivatives trading, while Spain’s government nationalized Bankia SA. Financial shares dropped in Europe today on concern that Greece’s political turmoil makes a euro exit for the nation more likely.

Moody’s said in January it would overhaul how it rates European banks and firms with global securities operations to reflect the adverse effects of the sovereign-debt crisis, dwindling economic growth and the latest round of capital rules set by the Basel Committee on Banking Supervision.

“The combination of current challenges and inherent risk factors has introduced speculative elements into the obligations of these firms that we believe are not fully reflected in their current ratings,” Moody’s said in a note published Jan. 19.

© Copyright 2015 Bloomberg News. All rights reserved.

Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.

You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved