Moody's cuts six Canadian banks

Moody's Investors Service said it downgraded the long-term deposit ratings of the following six Canadian banks:

• Bank of Montreal (downgraded to Aa3 stable from Aa2);

• Bank of Nova Scotia (downgraded to Aa2 stable from Aa1);

• Caisse centrale Desjardins (downgraded to Aa2 stable from Aa1);

• Canadian Imperial Bank of Commerce (downgraded to Aa3 stable from Aa2);

• National Bank of Canada (downgraded to Aa3 stable from Aa2); and

• Toronto-Dominion Bank (downgraded to Aa1 stable from Aaa).

The short-term Prime-1 ratings of the banks were affirmed. All ratings for the banks now have a stable outlook.

"Today's downgrade of the Canadian banks reflects our ongoing concerns that Canadian banks' exposure to the increasingly indebted Canadian consumer and elevated housing prices leaves them more vulnerable to unpredictable downside risks facing the Canadian economy than in the past." Moody's vice president David Beattie said in a news release.

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