Moody’s Downgrades Global Banks

Ratings agency Moody’s has begun its much anticipated downgrade of the U.S., Canadian, and European banking sectors.

Of the 17 firms downgraded this afternoon, none were hit more than Moody’s originally said was possible when it placed them on review in February.

The action will likely force many of the banks targeted post additional collateral against trades held on their books.

Below, a summary of the major ratings action taken.

Cut One Notch:

HSBC downgraded to Aa3 from Aa2

Lloyds TSB downgraded to A2 from A1

RBS downgraded to Baa1 from A3

Cut Two Notches:

Bank of America downgraded to Baa2 from Baa1

BNP Paribas downgraded to A2 from Aa3

Barclays downgraded to A3 from A1

Citigroup downgraded to Baa2 from A3

Credit Agricole downgraded to to A2 from Aa3

Goldman Sachs downgraded to A3 from A1

JP Morgan Chase downgraded to A2 from Aa3

Morgan Stanley downgraded to Baa1 from A2

RBC downgraded to Aa3 from Aa1

UBS downgraded to A2 from Aa3

Cut Three Notches:

Credit Suisse downgraded to (P)A2 from (P)Aa2

Perhaps the best news of the downgrade came to Morgan Stanley, which was on review for a downgrade by as much as three levels. Shares in the bank are up more than three percent in after-hours trade.

Sources and more information:

• BREAKING: Moody’s expected to announce ratings downgrade for some of world’s biggest banks, incl in UK, after US mkts close tonight – Sky Sources

Even as Moody is now about a week late on its Spanish bank downgrade where the banks are rated higher than the sovereign (which obviously is kept in check to prevent yields on bonds from soaring even more), here comes the next wholesale bank downgrade: Moody’s expected to announce ratings downgrade for UK banks this evening – Sky…

• RBC among 17 gigantic banks on Moody’s chopping block

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