Moody's downgrades three UK banks

Friday 22nd June 2012

Credit ratings agency Moody's has downgraded 15 banks and financial institutions, including  the UK's Royal Bank of Scotland, Barclays and HSBC.

The downgrades are likely to make it harder and more expensive for the banks to borrow money, which would in turn affect how much they could lend on the high street and at what rates. This morning, politicians asked the banks not to use the downgrade, made because of the continuing Eurozone crisis, as an excuse to tighten their purse strings.

In the US, Bank of America, Citigroup, Goldman Sachs and JP Morgan are among those downgraded. 

Other institutions that have been downgraded are Credit Suisse, UBS, BNP Paribas, Credit Agricole, Societe Generale, Deutsche Bank, Royal Bank of Canada and Morgan Stanley.

The BBC's Scotland business editor Douglas Fraser tweeted: "Cost of RBS downgrade by Moody's: having to post an estimated extra £9bn in collateral for its debts."