Moody’s looks to downgrade Western European banks with Eastern exposure

Moody’s Investors Service said yesterday that Western European banks with subsidiaries in Eastern Europe face downgrades, particularly Raiffeisen Zentralbank Oesterreich AG and Swedbank AB. Moody’s also warned about UniCredit, Erste Bank, Societe Generale and KBC. Moody’s cautioned that the downturn in Eastern Europe will be more severe as a consequence of the countries’ dependence on capital flows from the west.