Moody's cuts credit ratings of six Canadian banks

|About: Bank of Montreal (BMO)|By:, SA News Editor

Noting continuing growth in Canadian consumer debt and bubbly housing prices leave that country's banks vulnerable to potential losses, Moody's downgrades the credit ratings of TD Bank (NYSE:TD), Bank of Montreal (NYSE:BMO), Scotiabank (NYSE:BNS), CIBC (NYSE:CM), RBC (NYSE:RY), and National Bank of Canada (OTCPK:NTIOF).

Putting some numbers on it, private-sector debt has jumped to 185% of the country's GDP, and Toronto housing prices were up 25% Y/Y in April.

Moody's continues with a negative outlook on all of the six lenders cut today.

The last month, of course, has seen a run on mortgage lender Home Capital Group, and Canada's Big 5 are all lower by 4%-7% over that time frame.

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