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Series 4, Episode 15 Masterchef New Zealand 19 May 13 00:43:41

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Moody's downgrades over a dozen major banks

Published: 10:49AM Friday June 22, 2012 Source: ONE News

Moody's Investors Service has downgraded the debt ratings of 15 major international banks.

Big names like Bank of America, Citigroup, Goldman Sachs, JPMorgan and Morgan Stanley are amongst the downgraded.

According to CNBC , it is a move expected to cost banks billions of dollars in extra collateral, although all of the cuts were expected.

The ratings agency said they were downgraded because their long-term prospects for profits and growth are shrinking.

How far they fell

Bank of America, the second-largest bank holding company in the US, saw its long-term debt rating was cut one notch from BAA1 to BAA2.

Moody's pulled Citigroup's rating down two notches - to BAA2 from A3.

Investment bank and securities firm Goldman Sachs also saw a two notch downgrade, to A3 from A1.

JPMorgan was also cut two notches, from A2 to AA3 and Morgan Stanley hit BAA1, two notches from A2.

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