Fitch Warns That Nearly A Dozen Banks May See Ratings Cut

Fitch Ratings has put more than a dozen banks on credit watch negative. UBS

, Lloyds Banking Group

and Royal Bank of Scotland

all had their long-term issuer default grades cut by the ratings agency. Other banks, including Goldman Sachs

, and Morgan Stanley

have been put on negative review due to new regulations as well as economic developments. Other banks that have been put on watch include Deutsche Bank

, Credit Suisse

, BNP Paribas

, Societe Generale

, and Barclays

. Bloomberg quoted Adrian Miller of Miller Tabak Roberts Securities as saying “Fitch systematically, like many of the rating agencies, seems to be working its way through the European banking community from the standpoint of raising awareness of potential capital inadequacies. “This is more or less a macro call on the sector. It's a continuation of a developing theme that's been going on since July that, since that point, has intermittently sent shockwaves throughout the market.”