Moody’s Investors Services Downgrades Credit Ratings of 6 Major Canadian Banks

by Colonel on January 28, 2013

“Moody’s Investors Service downgraded six of Canada’s major financial institutions on Monday on concerns over high levels of consumer debt among Canadians and elevated house prices.

The ratings affect Toronto-Dominion Bank, Scotiabank, Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank and the Desjardins caisse populaire.

TD is the highest rated at AA1 among the six (down from AAA). Bank of Nova Scotia and Desjardins drop to AA2 (from AA1), CIBC, BMo and National slip to AA3 (from AA2).

Canada’s commodity-rich economy has fared better than other nations, and its banks have long been rated among the soundest in the world. There was no mortgage meltdown or subprime lending crisis. But there are fears of a housing bubble fueled by historic low interest rates.

” — Copyright 2013 The Associated Press

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