Four Dutch Banks downgraded by Standard & Poor’s
S&P downgrades four Dutch banks
Sat, 17 Nov 2012 14:13:12 GMT
Standard & Poor’s Ratings Services downgrades the credit ratings of four Dutch banks over the growing risks of the potential prolongation of the eurozone recession.
On Friday, S&P slashed ABN AMRO’s rating to A from A+ and Rabobank’s rating to AA- from AA. Two other banks, SNS REAAL and F. van Lanschot Bankiers were also cut by one notch.
“In our view, Dutch banks are exposed to increased economic risks as a result of a potentially more protracted downturn in the Netherlands and wider eurozone,” said the New York-based rating agency in a statement.
Dutch bank ING has said on November 7 it would lay off another 2,350 employees over time after a huge profit plunge.
“The bank released figures showing that the net profit for Q3 2012 has only reached 609 million euros, indicating a massive reduction from the 1.69 billion-euro profit reported in the same quarter last year.”
Europe plunged into financial crisis in early 2008. Insolvency now threatens heavily-debt-ridden countries such as Greece, Spain, Portugal, Italy, and Ireland.
The worsening debt crisis has forced the EU governments to adopt harsh austerity measures and tough economic reforms which have triggered incidents of social unrest and massive protests in many European countries.