Fitch downgrades several global banks including Barclays

16th Dec 2011 08:18

Fitch Ratings has downgraded some of the major global banks due to the growing risks for financial markets arising from both economic developments as well as a "myriad of regulatory changes". Specifically, the agency cut Barclays and Credit Suisse by two notches (to AA- from A) and the ratings of Bank of America, BNP Paribas, Citigroup, Deutsche Bank and Goldman Sachs by one notch each.Not all banks were affected. Fitch maintained it's A rating on JP Morgan, Morgan Stanley and UBS and it's A+ rating on Société Générale.With regard to Barclays, Fitch has decided to remove the bank from Rating Watch Negative after the downgrade, revising its outlook to stable. "Given the group's substantial wholesale funding needs and extensive range of counterparties, Fitch believes Barclays will maintain a conservative approach to capitalization and liquidity, especially given increasingly stringent regulatory requirements ahead and the tough economic and market outlook", these analysts explain.JM