Ailing banks spark rating worries
By The Holland Times Mon. 18 June 2012
The Netherlands' much prized AAA credit rating looks to be on shaky ground once more as Moody's has downgraded the classification of a number of Dutch banks.
The move took place on Friday, when Moody's downgraded the classification of both ING and ABN Amro by two notches to an A2 rating. Rabobank has been similarly chastened, with another drop of two steps to Aa2. A reduction to Baa2 was in store for bit players LeasePlan and SNS Bank.
However, this drop in status does not mean that Dutch banks are a lost cause, according to the credit agency. Moody's in fact considers it likely that the Dutch state will once again come to the rescue of the big banks if need be.
"The long-term debt and deposit ratings for four of the five Dutch banking groups downgraded today continue to be positioned above their standalone credit assessments, reflecting Moody's assumption of a high likelihood of systemic support, if needed," the company said via a statement released to the Associated Press.
(Photo: ING Nederland)