SAN FRANCISCO (MarketWatch) -- Moody's Investors Service downgraded the ratings late Thursday of 15 financial firms with global capital-markets operations from one to three notches. Among those affected were Bank of America Corp. BAC -3.93% , Barclays PLC UK:BARC -1.68% , Citigroup Inc. C -3.57% , Credit Suisse Group AG CS -3.83% , Goldman Sachs Group Inc. GS -2.74% , HSBC Holdings PLC , J.P. Morgan Chase & Co. JPM -2.58% , Morgan Stanley MS -1.69% , Royal Bank of Scotland Group PLC UK:RBS -1.74% , Credit Agricole SA FR:ACA -1.79% , BNP Paribas FR:BNP -1.38% , Deutsche Bank AG DB -3.40% , Royal Bank of Canada CA:RY -3.24% , Societe Generale FR:GLE -1.31% and UBS AG UBS -3.07% . "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", said Greg Bauer, Moody's global-banking managing director, in a statement
Moody's Investors Service downgraded a handful of banks and securities companies with global capital-market operations, as part of its broad review to account for sluggish economic conditions and tougher regulations.
In Moody's rating actions, Bank of America Corp. BAC -3.93% was cut one notch to Baa2 from Baa1; its outlook is negative. Citigroup Inc. C -3.57% was cut two levels to Baa2 from A3; its outlook is negative. Goldman Sachs Group Inc. GS -2.74% was downgraded two notches to A3 from A1; its outlook is negative. J.P. Morgan Chase & Co. JPM -2.58% was cut two notches to A2 from Aa3; its outlook is negative. Morgan Stanley MS -1.69% was cut two notches to Baa1 from A2; its outlook is negative.
Moody's said the credit rating of Royal Bank of Scotland Group PLC (RBS, RBS.LN) was downgraded by one notch to Baa1 with a negative outlook. Barclays PLC (BCS, BARC.LN) was cut two notches to A3 with a negative outlook and HSBC Holdings PLC (HBC, HSBA.LN, 0005.HK) was downgraded one notch to Aa3 with a negative outlook.
Moody's also cut its ratings on France's three largest listed banks. Moody's downgraded the long-term debt ratings of BNP Paribas SA (BNP.FR, BNPQY) and Credit Agricole SA (ACA.FR, CRARY) by two notches to A2. The two banks have negative outlooks. Societe Generale SA (GLE.FR, SCGLY) was downgraded by one notch to A2 with a stable outlook.
Credit Suisse Group AG (CS, CSGN.VX) was downgraded by three notches to A1 with a stable outlook. Deutsche Bank AG (DB, DBK.XE) was downgraded by two notches to A2 with a stable outlook. Moody's lowered its ratings on UBS AG (UBS, UBSN.VX) by two notches to A2 with a stable outlook. Royal Bank of Canada (RY, RY.T) was downgraded by two notches to Aa3 with a stable outlook.