On Thursday, Moody’s Investor Service dealt a decisive blow to the Royal Bank of Canada and 14 other banks with global operations. The rating agency downgraded the banks’ credit ratings, making it more difficult to raise money through selling off debt.
Moody’s cut RBC’s rating by two full notches, knocking it down to Aa3.
While things could get a little trickier for RBC, the bank made a statement that the downgrade wouldn’t adversely affect its clients.
Moody’s also cut Credit Suisse Group’s rating by three levels and Morgan Stanley by two levels.