Credit agency Moody’s downgrades five Dutch banks

Credit ratings agency Moody’s downgraded five Dutch banking groups on Thursday night. Four of the banks were downgraded by two notches and one by one notch.


Rabobank was downgraded two notches to Aa2, ING and ABN Amro to A2 and LeasePlan Corporation to Baa2, Moody’s announced.
The long-term debt and deposit ratings for SNS Bank were downgraded one notch to Baa2.
Moody’s has assigned stable outlooks to the ratings for four of the banks and a negative outlook to ING, the agency said.
In a reaction, an ING spokesman emphasised that ‘a lot’ of banks in various countries have been downgraded, reports the Nos. ‘It is no surprise ING is among them,’ he said. Moody’s is saying the position of Dutch banks is ‘less strong’, but this does not mean they are now in a dangerous state, he told the Nos.
Vulnerable
Moody’s announced it would be looking at the Dutch banks in February. It says the downgrade reflects its view they will face difficult operating conditions throughout 2012 and possibly beyond.
The Dutch banks have characteristics that make them more vulnerable in the current environment, Moody’s said. These include large mortgage lendings.
The current recession, declining house prices and the ongoing eurozone debt crisis are likely to affect credit costs and profitability for banks, the agency said.
Moody’s looked at 114 European banks and also downgraded a number of French and Belgian banks.

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