Moody’s places ratings of eight Danish banks for possible downgrade
16 Feb 2012
Ratings agency Moody's has placed the ratings of eight Danish banks for a review and a possible downgrade, due to the impact of the euro zone debt crisis. The list of banks includes the country's biggest bank Danske Bank.
It also includes the second-biggest lender Jyske Bank, third-biggest Sydbank, Nordea, the Danish arm of the Nordic region's biggest lender Nordea, as also the mortgage and banking arm of unlisted Nykredit.
According to the agency, its move is part of a review of a total of 114 financial institutions in 16 European countries.
Moody's said the actions reflected, to differing degrees, the combined pressures from the adverse and prolonged impact of the euro area crisis, which made the operating environment very difficult for European banks.
Moody's added the deteriorating creditworthiness of euro area sovereigns was also a reason for the review.
Spar Nord Bank, Ringkjobing Landbobank and DLR Kredit were among the banks that would be reviewed.
