Moody's downgrades Danish banks – two blows in one day

Wednesday, 30 May 2012
Credit rating agency, Moody's down grades ratings of nine Danish banks.
According to a press release, the Danish banks affected were Danske Bank, Jyske Bank and Sydbank, whose long-term rating was, lowered each by two notches to Baa1 and whose short-term was reduced to P-2 from P-1.
Downgrades of the Danish banks comes after Danske Bank earlier today received a blow when another major credit rating company Standard & Poor's put the bank's rating one step down.
Already back in December a Danske Bank was downgrade by another rating agency, Fitch. With a lower rating, it makes it more costly for Danish Banks to borrow new capital and financing. It is now expected that this high cost could be passed to the customers.
By Scancomark.se Team

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