http://uk.reuters.com/article/2011/11/30/uk-banks-trading-idUKTRE7AT0VX20111130(Reuters) - Banks face a double hit to costs and revenues from a spate of credit rating downgrades, another burden for a sector already struggling because of the European Union's failure to deal decisively with its financial crisis.
Standard & Poor's cut its ratings on 15 big banks such as Bank of America Corp (BAC.N) and Morgan Stanley (MS.N) on Tuesday, as it seeks to give more insight into its methods and repair its reputation after the credit crisis.
While the downgrades were driven by a revision of the agency's internal models and not because of a change in the banks, they will have a real impact on funding costs for the sector, already on edge because of Europe's debt crisis.
"It will likely raise concerns about their short-term funding because they will be sidelined by money-market funds who are the traditional buyers of that short-term paper," said Andrew Fraser, investment director at Standard Life.
*** suffer you bastards -- suffer like Hell.