Moody’s Investors Service has downgraded the long-term debt and deposit ratings of six large US banks following the collapse of the Archegos Capital Management hedge fund earlier this month. The six banks include Credit Suisse Group AG, Goldman Sachs Group Inc., Morgan Stanley, Nomura Holdings Inc., UBS Group AG and BNP Paribas SA. Moody’s cited the increased risk of losses due to the banks’ involvement in the Archegos Capital collapse. The banks have all seen their ratings fall by one notch, with Credit Suisse and Goldman Sachs suffering a double-notch downgrade. Moody’s also noted that these banks have significant exposure to the Archegos’ collapse and could face additional losses in the future.
