Fitch Ratings downgrades four European banks
14 Oct 2011
Fitch Ratings yesterday downgraded four European banks and placed seven more international institutions on review for possible downgrade, on grounds of their mounting regulatory burdens even as new headwinds buffet financial markets.
The review focused mostly on big, rated banks that were especially sensitive to the increased challenges faced by the financial markets. Fitch also cited political developments that could lessen government support for the banks in case another financial crisis forced them to go for a bailout.
Fitch cut ratings of Germany's Landesbank Berlin Holding AG to A-plus from double A-minus and downgraded Britain's Lloyds Banking Group plc to A from double A-minus.
The ratings agency also lowered Royal Bank of Scotland Group plc to A from double A-minus and cut Switzerland's UBS AG to A from A-plus.
Overall Fitch lowered its support rating floors of 12 banks, 10 of which are UK based.
The ratings firm also placed negative reviews on Barclays plc, BNP Paribas, Deutsche Bank AG, Goldman Sachs Group GS -0.49 per cent, Morgan Stanley MS -1.39 per cent and Societe Generale SA following a broad review of financial institutions hit by the euro-zone crisis.