S amp P downgrades major US and European banks

Global credit rating agency major S&P has downgraded the long term credit rating of some major US and European banks amid rising concern about the worldwide economic and financial market health. Major US bank Bank of America and Goldman Sachs, major European banks Barclays, HSBC, and some banks in Germany and France were affected due to the unexpected credit rating downgrade by S&P.

At the same time, it has upgraded the credit rating two major Chinese banks Bank of China Ltd. and China Construction Bank Corp. and kept the credit rating unchanged for some big European banks Credit Suisse, Deutsche, ING and Societe Generale etc.

This unexpected credit rating downgrade by S&P has hit the share prices of the US and European banks which have witnessed a credit rating downgrade. Credit rating downgrade will increase their borrowing cost and put further pressure on their struggling financial health.