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Moody's Downgrades 6 of Canada's Banks

Posted at: 01/28/2013 3:32 PM
By: ROB GILLIES, Associated Press

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TORONTO (AP) - Moody's Investors Service is downgrading six of Canada's major financial institutions on concerns over high levels of consumer debt among Canadians and elevated house prices.

The ratings affect Toronto-Dominion Bank, Scotiabank, Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank and the Desjardins caisse populaire.

Moody's vice president David Beattie noted Monday that the banks still rank among the highest-rated banks in the world.

TD is the highest rated at AA1 among the six (down from AAA). Bank of Nova Scotia and Desjardins drop to AA2 (from AA1), CIBC, BMo and National slip to AA3 (from AA2).

Canada's economy has fared better than other nations. There was no mortgage meltdown or subprime lending crisis. But there are fears of a housing bubble fueled by historic low interest rates.

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