Moody’s reviews 6 Canadian banks for downgrade

就連加拿大都要出問題啦 !

www.jsmineset.com

Posted: Oct 26, 2012 3:30 PM ET

Bond rating company Moody’s Investors Service today said it would review the long-term ratings of six Canadian banks with the possibility of downgrading their creditworthiness.

Moody’s cited “concerns about high consumer debt levels and elevated housing prices” among its reasons, saying the banks are more vulnerable to a downturn in the Canadian economy than in the past.

The six include Bank of Montreal, Bank of Nova Scotia, Caisse Centrale Desjardins, Canadian Imperial Bank of Commerce, National Bank of Canada and Toronto-Dominion Bank.

The Bank of Montreal’s current Moody’s rating is Aa2, the Bank of Nova Scotia’s is Aa1, Caisse Centrale Desjardins’ is Aa1, the CIBC’s Aa2, the National’s Aa2 and the Toronto-Dominion’s, Aaa (see chart).

This spring, the average ratio of household debt to personal disposable income reached a record 163 per cent, up from 137 per cent five years earlier.

Canadian house prices, Moody’s said, rose 21 per cent in the last five years.
A downgrade could result in higher borrowing costs for the banks, which would be passed on to consumers.

Moody’s rating scale (investment grade): 
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3

Source: Moody’s Investors Service