• Moody’s places 6 banks on review for downgrade
  • TD, CIBC, National Bank, Scotia, Desjardins and Bank of Montreal
  • Royal Bank (the biggest) affirmed
  • Moody’s: any downgrades expected to be only one notch

USD/CAD ticking back toward the highs of the day. There’s no reason cited for the downgrades but they all hold very high credit ratings (TD currently AAA, for one) so it probably won’t have a sizable effect on funding costs.

Update: Moody’s says concerns about Canadian banks stem from high consumer debt and elevated housing prices.They see 2-3% GDP growth in 2013 but downside risks have increased.

Looks like Moody’s doesn’t want to be left behind on another housing crisis.