Funds News

S&P downgrades 11 top global bank credit ratings

LONDON, Dec 19 (Reuters) - Standard & Poor’s downgraded the credit ratings of 11 top global banks on Friday including Citibank, Deutsche Bank and JP Morgan, citing increased industry risk and a deepening economic slowdown.

The agency cut its ratings on Citibank C.N, Morgan Stanley MS.N and Goldman Sachs Group GS.N each by two notches.

It cut Bank of America BAC.N, JP Morgan Chase JPM.N and Wells Fargo WFC.N by one notch. [ID:nWLA4001]

In Europe, S&P shaved one notch off the ratings of Barclays BARC.L, Credit Suisse CSGN.VX, Deutsche Bank DBKGn.DE, Royal Bank of Scotland RBS.L and UBS UBSN.VXUBS.N. It kept the rating of HSBC Bank, part of HSBC Holdings Plc HSBA.L0005.HK, at AA but downgraded its outlook to negative from stable.

“The downgrades and revised outlooks reflect our view of the significant pressure on large complex financial institutions’ future performance due to increasing bank industry risk and the deepening global economic slowdown,” S&P said in a note.

Significant government intervention intended to stabilize the sector and restore public confidence may balance those pressures to a large extent, it added. (Reporting by Natalie Harrison; Editing by David Holmes)