Moody’s To Review Subdebt Ratings Of 41 Banks

Moody’s Investors Services announced today its decision to review for downgrade the subordinated debt ratings of 41 banking groups across eight banking systems in the Asia Pacific. The credit rating agency said that its decision arose due to its recent change in its assumptions about the likelihood of government support for holders of subordinated debt (subdebt). The subsets rank after other types of debt if a company fails. Moody’s Highlighted: However the rating agency highlighted that reviews of the banks’ subdebt ratings are not in any way related to any deterioration in the affected banks’ fundamental credit quality. The list of…