The credit rating firm Moody's turns moody with the all around economic crisis in the global scenario. Moody's Investor Service on Thursday downgraded the ratings of 15 global banks as a part of wider review of bank ratings. The ratings agency said that the banks were downgraded because their long-term prospects for profitability and growth are shrinking. Moody's also said it was especially concerned about banks with significant capital market activities during a time of increased volatility in markets.

However a downgrade usually means that it becomes more costly for banks to raise money by selling debt. Investors demand higher interest for riskier debt, which is what the downgrades represent. The banks in the top of the list that could be affected by the downgrading include the Royal Bank, Bank of America, JP Morgan Chase, Citigroup and Goldman Sachs. However most seem to defer on being affected and say that it will have a minimal impact on their business.

Moody's website says, `We have downgraded the ratings of 15 banks and securities firms with global capital markets operations. The rating review, initiated on 15 February, has now been concluded. All the banks affected by these rating actions have significant exposure to the volatility and risks inherent in the capital markets business, which have led many to fail or avoid it only through the receipt of support from a third party. As part of our review of European banks, also announced on 15 February, we have to date also taken actions on banks in Germany, Austria, Spain, Italy, Portugal, Sweden, Norway, Denmark, Finland, France and the Benelux countries.' (With inputs from internet-AarKay)