Moody's set to downgrade major UK banks

Rating agency Moody's is preparing to downgrade several UK banks this evening, including RBS, Barclays and HSBC, according to reports.

The expected move is part of the agency's wider downgrade of major world banks amid the deepening eurozone crisis, reports Sky News. Confirmation of the downgrades, which could potentially add billions of pounds to the funding costs of impacted institutions, is expected after US markets close this evening. Barclays, HSBC and state-owned lender RBS are reportedly among the banks under scrutiny as the global financial crisis piles more pressure on lenders. Banks across the Channel, including Société Générale and BNP Paribas, could also be hit by the action, in addition to Wall Street...