Ratings agency Moody’s to review six Canadian banks for possible downgrade

TORONTO – Moody’s Investors Service says it has placed the long-term ratings of six Canadian banks on review for a possible downgrade due in part to risks related to high levels of consumer debt and housing prices.

The debt rating agency put Bank of Montreal (TSX:BMO), Bank of Nova Scotia (TSX:BNS), Caisse Centrale Desjardins, CIBC (TSX:CM), National Bank of Canada (TSX:NA) and Toronto-Dominion Bank (TSX:TD) under review.

Royal Bank (TSX:RY), Canada’s largest bank, was not included on the list.

Moody’s said high levels of consumer debt and high housing prices have left the Canadian banks more vulnerable to downside risks to the Canadian economy than in the past.

While Moody’s said it was reviewing the long-term ratings, the agency affirmed its short term Prime-1 ratings on the six banks.