Moody's has dropped the hammer on the country's biggest banks - downgraded
their credit ratings amid high housing prices and record levels of consumer
debt. Moody's also singled out the TD Bank - taking away its triple-A rating
on worries about the increasing size of its U.S. operations. The other banks
affected were the Bank of Nova Scotia, Bank of Montreal, CIBC, National Bank
of Canada, and Caisse Centrale Desjardins. The Royal Bank was spared a
downgrade, but it was rated in June of 2012. While Moody's still considers
the Canadian banking sector among the strongest in the world, it said "the
Canadian banking system would be not quite as resilient as it has in the
past because of the high leverage levels of Canadian consumers."

 

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