Moody's downgrades Austrian banks on Hypo loss law worries
VIENNA, June 20
VIENNA, June 20 (Reuters) - Ratings agency Moody's Investors Service downgraded several Austrian banks on Friday on concerns about a draft law unveiled this month that imposes losses on subordinated debtholders in nationalised lender Hypo Alpe Adria despite guarantees from its home province of Carinthia.
"The unprecedented nature of the government's decision to place taxpayers' interests above the rights of creditors who had previously benefited from a public sector guarantee indicates, in Moody's opinion, that Austrian authorities are now generally more willing to countenance bank resolutions in which losses may also be imposed on senior creditors," it said in a statement.
Other ratings agencies have taken similar action.
For details on the ratings changes see: