The Mood Has Soured Over Canadian Banks

(RTTNews) - Moody's has downgraded the credit rating of six big Canadian banks largely due to high debt levels and soaring house prices in the country.

Moody's lowered the credit ratings of Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada and Royal Bank of Canada, by one notch.

Moody's cited a "more challenging operating environment for banks in Canada for the remainder of 2017 and beyond."

"Today's downgrade of the Canadian banks reflects our ongoing concerns that expanding levels of private-sector debt could weaken asset quality in the future," Moody's vice-president David Beattie 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."