RBC downgrated

Moody’s downgrades RBC two notches

Moody’s on Thursday chopped its ratings on 15 global banks including Royal Bank of Canada, citing their exposure to turmoil and potential losses in global capital markets.

The ratings giant lowered RBC by two notches as part of a review of 17 global banks launched back on Feb 15.

“All of the banks affected by today’s actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities,” Moody’s Global Banking Managing Director Greg Bauer said in a statement. “However, they also engage in other, often market leading business activities that are central to Moody’s assessment of their credit profiles. These activities can provide important ‘shock absorbers’ that mitigate the potential volatility of capital markets operations, but they also present unique risks and challenges.”