Moody's

Moody's has downgraded the credit rating of financial services group Close Brothers, pointing to the rapid growth of its loan book and its exposure to the flagging UK economy.

Moody's has cut Italy's credit rating by two notches to Baa2 as the euro area's third biggest economy faces higher funding costs and contagion risk from Greece and Spain.

Ratings agency Moody's has changed the outlook on Barclays' financial strength rating from stable to negative, saying the uncertainty over the bank's future direction is negative for bondholders.

World markets including the FTSE fell in early trading as weak economic data and Moody's downgrade of 15 banks unnerved investors.

Credit rating agency Moody's has downgraded 15 financial institutions overnight, including major UK and US banks.

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

ON BONDS

Investors have suggested the eurozone crisis has not yet reached another critical stage, despite a €100bn bailout of Spanish banks failing to prevent the country's borrowing costs reaching record highs.

Moody's has downgraded the credit ratings of five of the Netherlands' largest banks as the country's economy struggles with a domestic recession and the effects of the eurozone crisis.

Moody's has downgraded Spain's credit rating by three notches to Baa3 from A3, just above junk status, and placed it on review for further possible downgrades.