Moody’s downgraded World’s 15 Banks – Alfalah Securities Limited

Karachi, June 25, 2012 (PPI-OT): Moody’s has downgraded the credit ratings of 15 large financial institutions including Bank of America, Barclays, Citigroup, Credit Suisse, Goldman Sachs, HSBC, J.P. Morgan Chase, Morgan Stanley, Royal Bank of Scotland, BNP Paribas, Credit Agricole, Deutsche Bank, Royal Bank of Canada, Societe Generale and UBS.

According to Alfalah Securities Limited, in total four firms were downgraded by one notch, 10 firms by two notches and one by three notches. The banks risked massive losses and that they were exposed to the financial crisis. These banks have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities. This decision would be termed negative for the capital markets and result in a drop in world indices. This would also have a limited consequential negative impact on the Pakistani Market or KSE-100 index.

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