Saturday, October 27, 2012

Moody's warns it may put top Canadian banks on downgrade watch


 
A Moody's sign on the 7 World Trade Center tower (file photo)

Source: Press TV
http://www.presstv.ir/detail/2012/10/27/268966/canada-banks-at-risk-of-being-downgraded/

Moody’s Investors Service has warned that it could slash the credit ratings of five top Canadian banks as the country is increasingly feeling the pinch of global financial crisis.

The rating agency said on Friday that the possible lowering of the banks’ rating by one notch is due to “concerns about high consumer debt levels and elevated housing prices.”

According to fresh official figures, Canadian consumer debt has increased to record highs in recent months as the ratio of household debt-to-income reached 163.4 percent in the second quarter of 2012, up from 161.8 percent in the first quarter.

“Domestically, we're concerned about the high and increasing levels of consumer indebtedness and elevated housing prices, and we feel that they may tend to leave the Canadian banks more vulnerable to downside risks to the economy than they have been in the past,” said David Beattie, Moody's vice president and senior credit officer.

Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce (CIBC), and the National Bank of Canada are the ones that may be downgraded by the rating agency.

The Bank of Montreal's current Moody's rating is Aa2, the Bank of Nova Scotia's is Aa1, the CIBC's Aa2, the National's Aa2 and the Toronto-Dominion's, Aaa.

In a similar move in July 2012, Standard & Poor's (S&P) Ratings Services also put several Canadian banks on “negative outlook,” citing rising consumer debt and elevated housing prices

No comments:

Post a Comment

Thanks for commenting on this post. Please consider sharing it on Facebook or Twitter for a wider discussion.

Russian / Ukraine War - (Mar 08th, 2024)

How the Ukraine War Changed the World - (Mar 01st, 2024)

Redacted - Egypt's betrayal of Palestine - Vanessa Beeley

CrossTalk | Magical thinking - (Feb 28th, 2024)

Hillary Clinton Interrupted & Called Out in Berlin

We don’t want war with Israel, but if they impose it on us, we are ready – Hezbollah

ICJ delivers ruling in favour of South Africa

ICJ ruling | Court stops short of ordering Gaza ceasefire, demands that Israel prevent genocide

South Africa's Closing Argument Against Israel for Genocide at the ICJ

Wider Middle East war. US, UK strike Yemen

U.S., UK Start Another Unwinnable War In Yemen

Geopolitical Storm Brewing from Palestine to Ukraine

How the US Global Order is Challenged - With Pepe Escobar (Nov 20, 2023)

Shahid Bolsen - Message to the Israeli people

Roger Waters - To Whom It May Concern: Please Stop.

US policy slowing down China's economy w/ Jeffrey Sachs

Max Blumenthal s destroys RFKJr's outrageous Israelí Propaganda

Totalitarianism, Censorship and Syria with Peter Lavelle, Vanessa Beeley & Kevork Almassian

Putin shows treaty on Ukraine’s neutrality, signed by Kiev but dumped under Western pressure

Assad's speech at the Arab League Summit - what it means for the future of the region

Assad returns to Arab League

HUGE China brokered deal, Iran & Saudi Arabia restore diplomatic ties

Nord Stream pipeline & sabotaging peace w/Jeffrey Sachs

The Tragedy of Ukraine

Historical Events that Led to the Start of the Ukraine Conflict

Your Wars Will Destroy the Planet - Roger Waters

Healthy Athletes suffer Heart Problems After Getting the Jab