P.M. BRIEFING : Moody’s May Act on Japan Banks
Moody’s Investor Service said today that it may soon downgrade the credit ratings of several major Japanese banks because of their huge exposure to real estate loans.
“Moody’s remains concerned that rapidly rising interest rates or a credit crunch could pop the real estate bubble,” a report from the rating agency said.
A Moody’s Japan official cautioned, “This will not be an across-the-board downgrading of Japanese banks.”
New York-based Moody’s is one of the world’s prime rating agencies for judging the credit-worthiness of companies and governments.
The official declined to comment on the names or the number of banks involved or on when Moody’s decision will be announced.
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