Moody’s down­grades rat­ings of 6 Canada banks

New Straits Times - - Business -

SEAT­TLE: Six of Canada’s largest banks had credit rat­ings down­graded by Moody’s In­vestors Ser­vice on con­cern that over-in­debted con­sumers and high hous­ing prices have left lenders vul­ner­a­ble to losses on as­sets.

Toronto-Do­min­ion Bank, Bank of Mon­treal, Bank of Nova Sco­tia, Cana­dian Im­pe­rial Bank of Com­merce, Na­tional Bank of Canada and Royal Bank of Canada had their long-term debt and de­posit rat­ings low­ered one level, said Moody’s on Wed­nes­day. It also cut its coun­ter­party risk as­sess­ment for the firms, ex­clud­ing Toronto-Do­min­ion.

“Ex­pand­ing lev­els of pri­vate­sec­tor debt could weaken as­set qual­ity in the fu­ture,” said David Beattie, a Moody’s se­nior vi­cepres­i­dent.

A run on de­posits at al­ter­na­tive mort­gage lender Home Cap­i­tal Group Inc has sparked con­cern over a broader slow­down in the na­tion’s real es­tate mar­ket, at a time when Cana­di­ans are tak­ing on higher lev­els of house­hold debt.

The firm’s strug­gles have taken a toll on Canada’s big­gest fi­nan­cial in­sti­tu­tions, which have seen stocks slide on con­cern about con­ta­gion. Bloomberg

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.