Fresh AAA warning as Moody's downgrades Dutch banks

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Moody's has downgraded the credit ratings of five of the Netherlands' largest banks as the country's economy struggles with a domestic recession and the effects of the eurozone crisis.

The Dutch economy has been in recession for three quarters, with a further contraction likely in Q2, as falling house prices and the wider impact of the eurozone sovereign debt crisis leave it with little room to manoeuvre. Moody's downgraded the ratings of lenders ING and state-owned ABN Amro by two notches to A2, with Rabobank Nederland cut two notches to Aa2. Smaller lenders LeasePlan and SNS Bank were cut to Baa2, with all except ING given a stable outlook. The ratings agency acknowledged the larger banks would benefit from their control of the Dutch retail banking market but said...

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