FT.com reported today that Moodys has down graded the credit rating of Royal Bank of Canada (RBC) from the coveted AAA rating to AA1.
This leaves TD Bank as the only Canadian bank to keep the coveted triple A rating, along with only a handfull of banks worldwide.
The moves comes after RBC has struggled to gain more productivity from its recent acquisitions and operations in the U.S. domestic market while increasing its exposure to Capital Markets.Moodys said:
This comes on the heals of recent M&A activity from RBC. On Dec 9th, RBC agreed to buy European fund
manager BlueBay Asset Management for around 963 million pounds ($1.54 billion). as it attempts to expand its footprint beyond North America.
Disclosure: long TD