Photo: Zechariah Judy on Flickr
Moody’s just announced that it would make decisions on the ratings of European banks starting in early May.Investors have been speculating fears over Moody’s slashing banks’ ratings is behind the recent market drops we’ve seen, particularly since Morgan Stanley predicted Moody’s could start slashing bank ratings as early as next week.
Now it looks like this uncertainty will extend into May.
Here’s the release from Moody’s:
London, 13 April 2012 — Moody’s Investors Service today updated its timetable for concluding the reviews of Western European banks and of firms with global capital markets operations (see press releases published on 15 February 2012 “Rating Action: Moody’s reviews Ratings for European Banks” and “Moody’s Reviews Ratings for Banks and Securities Firms with Global Capital Market Operations”, available on Moodys.com). Moody’s is taking an appropriately deliberate approach during this review process and will conclude when it is confident that all relevant information has been received and analysed. As noted in a previous communication on March 15, the review timeline is subject to change and Moody’s intends to keep the market informed of any relevant updates.
The next rating action is now expected to occur in early May and rating actions should, in general, follow the sequential order by system included below. Moody’s expects to conclude the reviews by the end of June.
Firms with global capital markets operations
The timetable is contingent upon timely completion of internal due processes and could be delayed by external events outside Moody’s control.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.