Moody’s cuts outlook for European banks on credit woes

FRANKFURT -Global credit ratings agency Moody’s downgraded its outlook for banks in Germany, Italy and four other countries to “negative” from “stable” on Wednesday as Europe’s energy crisis and high inflation weaken its economies.

The downgrade also affects banking sectors in the Czech Republic, Hungary, Poland and Slovakia, and Moody’s said the grouping includes those most at risk of energy price inflation and possible energy rationing.

“We expect operating conditions to deteriorate further,” Louise Welin of Moody’s said.

Some of Europe’s largest banks have warned of growing risks as the economy fizzles after posting stronger-than-expected profits last week.

European banks’…

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