Ratings cut for banks sparks fears consumers will face higher interest rates

A number of UK banks have seen their credit ratings cut overnight, sparking fears that borrowers, especially businesses, could find it harder to get finance and be forced to pay higher interest rates. Moody's, the credit rating agency, has downgraded a total of 15 worldwide banks and financial institutions including Royal Bank of Scotland, Barclays, and HSBC. Barclays suffered the biggest cut in the UK, by two 'notches', from Aa3 to A2; HSBC and RBS were cut by one 'notch'. The downgrades appear to be a result of the crisis in the Eurozone and concern that governments could withdraw support for banks in ...