More downgrades
December 16, 2011
Fitch Ratings downgraded the viability ratings of several of Europe's biggest banks on Thursday, saying the move reflected growing uncertainty in the banking sector.
Banks remain vulnerable to market sentiment and confidence amid increased regulation and weak economic growth, Fitch said.
The ratings for Germany's Deutsche Bank, Britain's Barclays PLC, France's BNP Paribas and Societe Generale and Switzerland's Credit Suisse were all lowered, as well as America's Bank of America Corp., The Goldman Sachs Group Inc. and Morgan Stanley.
Challenges for the entire sector
The downgrades "reflected challenges faced by the sector as a whole, rather than negative developments in idiosyncratic fundamental creditworthiness," Fitch said in a statement.
Fitch said the banks had made "significant progress" in building up capital and liquidity buffers to withstand shocks but were "particularly sensitive to the increased challenges the financial markets face."
The ratings agency specifically cited the regulatory changes put into place after the 2008 financial crisis, for which the banking industry is blamed in part.
Author: Holly Fox (AFP, AP)
Editor: Andreas Illmer