Moody's Investors Service downgraded a handful of banks and
securities companies with global capital-market operations, as part
of its broad review to account for sluggish economic conditions and
tougher regulations.
In Moody's rating actions, Bank of America Corp. (BAC) was cut
one notch to Baa2 from Baa1; its outlook is negative. Citigroup
Inc. (C) was cut two levels to Baa2 from A3; its outlook is
negative. Goldman Sachs Group Inc. (GS) was downgraded two notches
to A3 from A1; its outlook is negative. J.P. Morgan Chase & Co.
(JPM) was cut two notches to A2 from Aa3; its outlook is negative.
Morgan Stanley (MS) was cut two notches to Baa1 from A2; its
outlook is negative.
Moody's said the credit rating of Royal Bank of Scotland Group
PLC (RBS, RBS.LN) was downgraded by one notch to Baa1 with a
negative outlook. Barclays PLC (BCS, BARC.LN) was cut two notches
to A3 with a negative outlook and HSBC Holdings PLC (HBC, HSBA.LN,
0005.HK) was downgraded one notch to Aa3 with a negative
outlook.
Moody's also cut its ratings on France's three largest listed
banks. Moody's downgraded the long-term debt ratings of BNP Paribas
SA (BNP.FR, BNPQY) and Credit Agricole SA (ACA.FR, CRARY) by two
notches to A2. The two banks have negative outlooks. Societe
Generale SA (GLE.FR, SCGLY) was downgraded by one notch to A2 with
a stable outlook.
Credit Suisse Group AG (CS, CSGN.VX) was downgraded by three
notches to A1 with a stable outlook. Deutsche Bank AG (DB, DBK.XE)
was downgraded by two notches to A2 with a stable outlook. Moody's
lowered its ratings on UBS AG (UBS, UBSN.VX) by two notches to A2
with a stable outlook. Royal Bank of Canada (RY, RY.T) was
downgraded by two notches to Aa3 with a stable outlook.
Write to Ben Fox Rubin at ben.rubin@dowjones.com.