Big banks just got a little shakier, as Moody's Investors Service downgraded the ratings of 15 massive, global banks and securities firms, many of whom are major players in the hospital bond sector.
"All of the banks affected by actions [on June 21] have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities," said Moody's Global Banking Managing Director Greg Bauer in the news release.
Moody's ratings are seen as a trigger event for hospital bond, bank and swap documents, and the downgrades are likely to increase the banks' borrowing costs and impact their ability to raise capital — which could impact the financing of hospitals and health systems who work with the institutions. The 15 major banks that received credit downgrades include the following:
• Bank of America
• Barclays
• BNP Paribas
• Citigroup
• Credit Agricole
• Credit Suisse Group
• Deutsche Bank
• Goldman Sachs
• HSBC Holdings
• JPMorgan Chase
• Morgan Stanley
• Royal Bank of Canada
• Royal Bank of Scotland Group
• Societe Generale
• UBS
The long-term senior debt ratings of 10 firms were downgraded by two notches, while four banks saw their ratings fall one notch. Credit Suisse took the biggest hit, as its senior debt rating fell three notches, from Aa2 to A2.
"All of the banks affected by actions [on June 21] have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities," said Moody's Global Banking Managing Director Greg Bauer in the news release.
Moody's ratings are seen as a trigger event for hospital bond, bank and swap documents, and the downgrades are likely to increase the banks' borrowing costs and impact their ability to raise capital — which could impact the financing of hospitals and health systems who work with the institutions. The 15 major banks that received credit downgrades include the following:
• Bank of America
• Barclays
• BNP Paribas
• Citigroup
• Credit Agricole
• Credit Suisse Group
• Deutsche Bank
• Goldman Sachs
• HSBC Holdings
• JPMorgan Chase
• Morgan Stanley
• Royal Bank of Canada
• Royal Bank of Scotland Group
• Societe Generale
• UBS
The long-term senior debt ratings of 10 firms were downgraded by two notches, while four banks saw their ratings fall one notch. Credit Suisse took the biggest hit, as its senior debt rating fell three notches, from Aa2 to A2.
More Articles on Hospital Bonds:
19 Hospitals With Tax-Exempt, Fixed-Rate Bond Issues in Past Month
8 Steps for Improving Hospital Access to Capital
Potential Bank of America Downgrade Could Impact Hospital Bonds