Moody’s puts top EU banks on alert

Moody’s said on Thursday that it put many of the top firms, including German and French banks, on watch for a possible ratings downgrade.

Deutsche Bank and Commerzbank of Germany, HSBC and Royal Bank of Scotland, ING of the Netherlands, Spain’s Santander and Italy’s Unicredit were among the largest groups which are being reviewed by Moody’s.

“In France, BNP Paribas, Societe Generale, Credit Agricole and Natixis among others will be reviewed,” the ratings agency said in a Thursday statement.

Moody’s says 24 financial institutions in Italy, 21 in Spain, 10 in France, nine in Britain, eight in Austria and eight in Denmark, seven in Germany, and six each in Portugal and the Netherlands are in its review list.

Moody’s Investors Service, which is one of the world’s top three ratings agencies, added that it also put five companies in Sweden, four in Slovenia, two in Switzerland, and one each in Finland, Norway, Belgium and Luxembourg on rate cut watch.

In January, Moody’s said that it would probably cut the ratings of several European banks given the strains in the economy caused by the debt crisis.

The ratings company on Monday slashed the credit ratings of Italy, Spain, Portugal, Slovenia, Slovakia and Malta over the ongoing eurozone debt crisis. It also put Britain, France and Australia on negative outlook.

Monday’s credit downgrades follow similar European rating cuts by Fitch and Standard Poor’s. The downgrades came amid efforts to prevent Greece from a chaotic default on its huge debt.

The agency questioned the implementation of institutional reform in the eurozone and whether adequate resources will be pulled together to deal with the debt crisis.

DB/MA

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