Because private Wall Street firms know best who is creditworthy and who isn't
Moody's Investors Service has cut its credit ratings for nine Danish banks, citing the impact of the ongoing eurozone crisis on bank loan quality and on their fund-raising capacity.
The ratings agency lowered the debt ratings of the banks, along with the Finnish subsidiary of one of the banks, by up to three notches on Wednesday, AFP reported.
The banks are Danske Bank, Jyske Bank, Sydbank, Spar Nord Bank, Ringkjobing Landbobank, Nykredit, Realkredit, DLR Kredit, and Danmarks Skibskredit. Moody's also downgraded Danske Bank's Finnish arm Sampo Bank.
"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," Moody's said.
"Asset quality is deteriorating, and these pressures are expected to continue," it added.
The agency also noted that the significant reliance of most of the financial institutions on market funding has enhanced their vulnerability to the eurozone crisis.
Comment: While the following link is not specific of the situation in Europe, it's worth noting: Cities Are Becoming Cesspools Of Filth, Decay And Wretchedness - which closes with: "So things are going to continue to get worse and.. continue to descend into squalor.
You better get ready."