Bank upgrades expected as Moody’s revises ratings methodology

Global banks’ credit ratings are expected to benefit from widespread upgrades in the next three months as Moody’s revises its ratings methodology for financials.

The rating agency is altering its approach to incorporate the external support banks can expect in the event of financial difficulties. This might include the help of a parent bank, another member of a banking group, or, most likely, regulatory action to prevent a bank from defaulting.

“Banks do collapse – but they very rarely default