May 10 Moody's Investor Service on Wednesday
downgraded the long-term ratings for six Canadian banks, citing
a more challenging operating environment for banks in Canada for
2017 and beyond, could lead to a deterioration in the banks'
asset quality, including increasing private-sector debt.
Weakening credit conditions in Canada include an increase
in private-sector debt to 185 percent of Canada's gross domestic
product last year, the ratings agency said.
"Continued growth in Canadian consumer debt and elevated
housing prices leaves consumers, and Canadian banks, more
vulnerable to downside risks facing the Canadian economy than in
the past," Moody's senior vice president David Beattie said in a
Toronto-Dominion Bank, Bank of Montreal,
Bank of Nova Scotia, Canadian Imperial Bank of Commerce
, National Bank of Canada and Royal Bank of
Canada were downgraded by one level, Moody's said in the
The ratings agency also downgraded ratings for the
affiliates of the six banks.
(Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by