Moody's downgrades long-term ratings of six Canadian banks -

Moody’s downgrades long-term ratings of six Canadian banks


TORONTO – Most of Canada’s biggest banks have been downgraded by Moody’s Investor Services, one of the world’s major credit rating agencies.

Moody’s says it took the step because of concerns over the banks’ exposure to heavily indebted consumers and elevated housing prices.

As mortgage lenders, Canada’s banks have benefited over the past few years from lending to home buyers.

The six financial institutions — five banks and a Quebec-based credit union — are being downgraded by one notch to either double-A one, two or three.

Double-A is still a relatively high, investment-grade ranking in the Moody’s system.

The ratings affect Toronto-Dominion Bank (TSX:TD), Scotiabank (TSX:BNS), Bank of Montreal (TSX:BMO), Canadian Imperial Bank of Commerce, (TSX:CM), National Bank (TSX:NA) and the Desjardins caisse populaire.

A downgrade by a credit rating agency usually means investors will demand a higher interest rate when a company goes to raise cash by issuing bonds or other debt.

Last October, Moody’s warned it was placing the long-term ratings of those six banks under review for a possible downgrade.

Royal Bank was not included on the list.

Moody’s had already cut Royal Bank’s long-term deposit rating to Aa3 from Aa1 in June as part of a move to cut the credit ratings of 15 of the world’s largest banks, including Bankof America, JPMorgan Chase, Citigroup and Goldman Sachs.

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Moody’s downgrades long-term ratings of six Canadian banks

  1. Canadian’s Banks are nothing more than an embellish oligarchy where transparency is trump by enslavement of its mass threw RRSP – Private Tax Collection’s scheme, auctions of Mothers, sisters , daughters and Canadian resources to the highest foreign bits as long as the elites and their agents gets their cuts . The feds’ bureaucrats and provincial’s agents are in total control of the banking system.

    The American’s banking fiasco (Tip) is peanuts compare to the Canadian Banking System (IceBerg). It is amazing the world Darwinist ‘s elites have not notice Canadian’s private Banking flaws.

    Even, One OF European’s Bank elites fools (Bank of England) even appointing utopian Scholar utopian Darwinist SS’ Mark Carney , The monkey have no clothes and yet the World Darwinist Elites are clueless , this is freedump at its best maximizing utopian profiteering Darwinist dividend war monger lovers in the name of freedump and the pursue of happiness in a box…

    May God bless this New Economic System , its New World orders and their SS Agents

    In Only God I trust,

    Ex-Gatekeeper of the lost free world