Moody's downgrades Danske, other Danish banks May 30 (Reuters) - Moody's Investors Service on W ednesday downgraded nine Danish financial institutions, pointing to sluggish economic growth, risks from the euro zone debt crisis and structural changes to the covered bond market, a reliable source of cash. The Moody's cut comes the same day that Standard & Poor's lowered Danske Bank, Denmark's biggest financial institution, one notch to A-minus/A-2 from A/A-1. However, Moody's cut Danske Bank's long-term rating two notches, to Baa1 from A2, with a stable outlook - still within investment grade. Moody's rating is now one step below S&P's rating. Other banks hit by downgrades include Jyske Bank, Spar Nord Bank, Ringkjobing Landbobank and Sydbank. Moody's is in the middle of a wider review of European banking systems and has recently cut the credit ratings of banks in Italy, Spain and the Nordic region. "Danish financial institutions face sluggish domestic economic growth, weakening real estate prices and higher levels of unemployment, as well as the risk of external shocks from the ongoing euro area debt crisis," Moody's said in a statement. The agency highlighted the risks to the financial institutions from relying on markets for their funding. "Most market funds are in the form of covered bonds which have historically been a stable funding source. But structural changes to that market have increased refinancing risk, posing a particular concern for mortgage credit institutions whose access to alternative funding is limited." http://www.reuters.com/article/2012/05/30/denmark-banks-moodys-idUSL1E8GUA3X20120530 These are the ripples in the EU financial pond coming from concerns over the PIGS's debt and inability to deal with the problem. The size of the gov't and the debt must be cut severely. European socialism is a dead man walking. _
Superb! The credit rating agencies which rated American subprime debt as AAA rated, and is paid for by the companies which it rates, is now to be trusted rating anything other than pig (*)(*)(*)(*). Why don't people wise up to the reality of US credit rating agencies? They should be banned.
As so very often, DonGlock -- you are not making any sense... I kindely would like to ask you to connect (1) and (2) -- (3) is nothing more than hocus-pocus. European socialism died when the Berlin Wall came down and Central and Eastern Europe freed themselves from the Soviet yoke.
