Moody's downgrades six Canadian banks ahead of Carney's departure

Credit ratings agency Moody's downgraded six Canadian banks last night over fears the lenders had become more vulnerable to downside risks and rising house prices.

Moody's cut the ratings by one notch, citing the banks' exposure to Canadian consumer debt and elevated house prices as the main risks  Canadian central bank chief Mark Carney (pictured), the incoming governor of the Bank of England, has issued warnings on the risks of high house prices and household debt and has urged Canadians not to become complacent just because their properties are worth more. Moody's put the six banks under review in late October and cited trading and investment banking activities as other areas of concern that potentially expose the banks to "outsized losses an...