May
11
Loonie, Bank Bonds Drop as Moody’s Downgrades Canada Lenders
By-
Firm’s move follows concerns over mortgage lender Home Capital
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Banks still have strong capital and liquidity buffers, it says
Canada’s dollar and bank bonds declined after Moody’s Investors Service downgraded the nation’s banks for the first time in more than four years, signaling that soaring household debt combined with runaway housing prices leave the lenders more vulnerable to losses.
The ratings firm lowered the long-term debt and deposit ratings one level on Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada and Royal Bank of Canada Wednesday. The move left TD with a long-term debt rating of Aa2, the third-highest level. Moody’s lowered the other five to A1, the fifth-highest. The outlook is negative on all six lenders…
Loonie, Bank Bonds Drop as Moody’s Downgrades Canada Lenders
