MOODY's Investors Service has joined Standard & Poors in downgrading Danske Bank, whose largest share holders are AP Moller Maersk Group and related entities and whose former CEO of Maersk Line, Eivind Kolding, was appointed bank chairman earlier this year.
Moody's also downgraded nine other Danish financial institutions, pointing to sluggish economic growth, risks from the euro zone debt crisis and structural changes to the covered bond market, a reliable source told Rueters.
The Moody's cut comes the same day that Standard & Poor's lowered Danske Bank, Denmark's biggest financial institution, one notch to A-minus/A-2 from A/A-1.
Moody's cut Danske Bank's long-term rating two notches, to Baa1 from A2, with a stable outlook - still within investment grade. Moody's rating is now one step below S&P's rating.
Other banks hit by downgrades include Jyske Bank, Spar Nord Bank, Ringkjobing Landbobank and Sydbank.
Said Moody's: "Danish financial institutions face sluggish domestic economic growth, weakening real estate prices and higher levels of unemployment, as well as the risk of external shocks from the ongoing euro area debt crisis."
The AP Moller Maersk Group and the AP Moller and Chastine McKinney Møller Foundation hold 22.84 per cent.
SHIPPING NEWS
04 June 2012 - 21:11
AP Moller's Danske Bank downgraded, run by ex-Maersk Line CEO
MOODY's Investors Service has joined Standard & Poors in downgrading Danske Bank, whose largest share holders are AP Moller Maersk Group and related entities and whose former CEO of Maersk Line, Eivind Kolding, was appointed bank chairman earlier this year.
SHIPPING NEWS
04 June 2012 - 21:11
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