The international rating agency Moody's warned of possible downgrades on debt 87 banks in 15 European countries in relation to the potential termination of support from government transfers «Prime» refers to the press release agency.
As noted in a statement, the ratings on debt 87 banks in Europe could be lowered by 1-2 steps.
Moody's believes that becoming unpredictable and unreliable system support subordinated debt in Europe is insufficient grounds to support the ratings.
«Moody's believes that the systems support of subordinated debt in Europe is becoming more unpredictable due to changes in policy and financial constraints,» — said in a release.
Among the factors that influenced the decision to revise the agency ratings, Moody's highlights a more limited financial flexibility of European countries require fiscal consolidation.
Moody's says that during the evaluation ratings will follow the decisions of the European Commission on banking issues, as well as interact with regulators and authorities to obtain additional information regarding support ratings on subordinated debt.
Most of the revisions will affect ratings of banks in Spain, Italy, Austria and France. In particular, large banks such as BNP Paribas, Societe Generale, UniCredit SpA, Banco Santander, Credit Suisse AG and UBS AG.