The credit ratings agency Moody’s has lowered the creditworthiness rating of five Dutch banks.
Rabobank, ING, ABN Amro, LeasePlan, and SNS Bank all had their ratings lowered. Rabobank now has a Aa2 credit rating, while ING, ABN Amro are now rated A2. SNS Bank and LeasePlan now have an even lower rating, Baa2.
Moody’s says the decision to lower the banks’ credit ratings was based on the protracted euro crisis and the questionable creditworthiness of a number of countries within the euro zone.
Moody’s is particularly concerned about ING bank. Moody’s says the outlook for the other banks is stable. Nevertheless, as a result of this latest downgrade, SN Bank and LeasePlan are now only two steps away from so-called non-investment grade or junk status. The lowering of a bank’s credit rating makes it more difficult for the bank to lend money on capital market.
According to Moody’s, Dutch banks will likely remain under pressure as a result of the recession in the Netherlands and falling house prices.
© Radio Netherlands Worldwide