How to deal with a bad credit rating
Posted On August 8, 2021
What to do when a bank is downgraded or its rating downgraded?
Here’s what to do.| The Hindu | February 15, 2018 08:24:51The latest credit rating downgrades from one of the largest rating agencies in the world and a bank that’s been under fire for years is not exactly a sign of good times to many in the business.
In fact, many credit ratings agencies are seeing some serious issues.
The latest one, Moody’s, has issued a rating of negative outlook on three major ratings agencies and one credit rating agency.
In a statement, the ratings agency said that the downgrade of two ratings agencies is a “negative signal for the financial system and economy as a whole”.
The two agencies are Moody’s Investors Service and Standard & Poor’s.
The downgrade is a big blow to the banks and the financial markets.
This could also affect the growth prospects of many small businesses and consumers, which is important for the economy.
As a bank, it has to be careful that its ratings are not affected by these issues, said Anand Kumar Gupta, head of consumer credit and banking at RBS.
However, it is important that it does not put a negative spin on the situation, he added.
Credit ratings agencies have always been cautious in rating banks.
They take into account the factors that are affecting their ratings.
Moody’s said the downgrade is based on a lack of confidence in the company and the fact that the rating agencies’ report does not reflect its own assessment.
The ratings agency also said that it believes the downgrade may have a negative impact on the outlook of the financial services sector in general.
Moody’s Investors Services (MIS) said that its report does “not reflect its assessment of the Company’s creditworthiness and the risks of the business model and the overall financial condition of the company.”RBS also downgraded its rating on the credit rating of one of its largest credit rating agencies, Standard & Poor’s, which was downgraded from one notch to one notch and two stars.
The bank said in a statement that the company is in the process of reviewing its rating and that it is “continuing to monitor the situation”.
The downgrade comes just days after Standard &s; Poor’t downgraded a credit rating for one of India’s biggest banks.
In November, the credit ratings agency downgraded the bank to BBB-C+ from BBB-.
The rating agency also downrated the bank’s business model, and said it expects the business to be “disruptive and uncertain in the near-term”.