Moody’s gives ‘negative outlook’ to PNC, Citizens, Fifth Third, Huntington banks. But what does that mean?
The Plain Dealer/cleveland.com (subscription required): Lakshmi Balasubramanyan, an associate professor of banking and finance at Weatherhead School of Management, commented for a story on the implications for consumers of lowered credit ratings for several banks. Balasubramanyan explained that reducing a bank’s credit rating is signaling that it is less likely to pay back loans, which could lead to slightly higher interest rates when that bank borrows money.
