Moody's could cut Canadian banks

Moody's Investors Service said it placed the long-term ratings of six Canadian banks - including the bank financial strength ratings, all senior debt, junior subordinated debt and preferred stock ratings - on review for downgrade.

The short-term Prime-1 ratings of the six banks are affirmed.

The banks placed on review include:

• Bank of Montreal: Aa2 review for downgrade, B-/A1 review for downgrade;

• Bank of Nova Scotia: Aa1 review for downgrade, B/Aa3 review for downgrade;

• Caisse Centrale Desjardins: Aa1 review for downgrade, C+/A2 review for downgrade;

• Canadian Imperial Bank of Commerce: Aa2 review for downgrade, B-/A1 review for downgrade;

• National Bank of Canada: Aa2 review for downgrade, B-/A1 review for downgrade; and

• Toronto-Dominion Bank: Aaa review for downgrade, B+/Ba2 review for downgrade.

Underpinning this review is Moody's view that these firms face challenges not fully captured in their current ratings, the agency said.

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