Fitch: crisis continues to reduce banks’ ratings
27 April 2008Agency Fitch Ratings has declared, that preservation of crisis of liquidity in the world financial markets continues to put pressure upon banks’ ratings.
In the 1st quarter of 2008 excess of quantity of “negative” forecasts on ratings above quantity of “positive” forecasts has proceeded, and the number of the lead negative rating actions for a quarter remains at rather high level.
A number of the largest banks of the USA have suffered especially strongly. Though the measures, taken by US Federal reserve system, have improved a situation with short-term accumulating, on ratings of several largest commercial and investment banks of the USA the forecast “negative” or rating watch “negative” has been appropriated.
Though the quantity of negative rating actions in the developed markets has reduced up to 41 in 1st quarter of 2008 against 48 in 4th quarter of 2007, downturns of ratings have remained at historically high level. These downturns have been lead in the developed countries of the American continent and Europe.
At the same time banks from developing markets show more favorable parameters, despite of a number of exceptions.
- UBS, Citigroup and Merrill Lynch can lose 10 billion dollars more
- Credits for small business
- Indian banks do not have not enough liquidity
- Thousand of bank employees abroad are jobless
