More than 100 banks across the world are in line to have their credit scores cut by a leading ratings agency in the near future, it has been reported.
During its analysis of the global financial industry later this month, Moody's Investor Service will opt to begin a process of downgrading a huge number of financiers, including several household names, Bloomberg reports.
Major banks such as BNP Paribas, Morgan Stanley and Deutsche Bank could all see their long and short-term debt figures reduced to all-time lows, which in turn may result in these firms to restrict their lending.
Such action from Moody's - which has a presence in 28 countries and employs 6,400 people - would further impact on the profitability of the lenders, therefore leaving them unable to borrow from private sources.
Phillipe Bodereau of Pacific Investment Management told the news source: "This is a setback for the banks, particularly when you consider how much progress they have made in making themselves safer and more transparent."
By Gary Cooper
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