Fifteen banks and securities firms with global capital market operations have had their credit ratings downgraded by ratings agency Moody’s. Among them are the Royal Bank of Scotland, HSBC and Barclays.

Barclays has had its long-term deposit and debt ratings downgraded to A2 from Aa3 with a negative outlook. HSBC had its long-term senior debt and deposit rating lowered to Aa3 from Aa2 and the Royal Bank of Scotland had its long-term deposit rating downgraded one notch to A3 from A2.

In the US, Bank of America had its long-term senior unsecured debt downgraded to Baa2 from Baa1. Goldman Sachs Bank USA had its long-term deposit ratings downgraded to A2 from Aa3.

Moody’s global banking managing director Greg Bauer said: “All of the banks affected by today’s actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities.

“However, they also engage in other, often market leading business activities that are central to Moody’s assessment of their credit profiles. These activities can provide important ‘shock absorbers’ that mitigate the potential volatility of capital markets operations, but they also present unique risks and challenges.”

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