Romania was lowered to junk today on a change in methodology and exposure to Greek and Austrian banks.
Also, 37 banks were downgraded by Standard & Poor’s. The downgrade list looks like it came directly off the league tables: Goldman Sachs, J.P. Morgan, Morgan Stanley, Bank of America, Citigroup, Barclays, and UBS were downgraded. S&P downgraded Chinese banks Bank of China and ICBC as well. Deutsche Bank, Credit Suisse, and ING were unaffected.
The rationale given for the bank downgrades was a change in methodology. Standard & Poor’s has posted a video explaining the ratings change methodology.
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