16. februar 2012, 13:29 – opdateret 16. februar 2012, 13:38

Global credits rating agency Moody's has warned it may cut the credit ratings of 114 financial institutions in 16 European countries, including leading Danish banks, as the euro zone debt crisis continues to play havoc on the global financial system. The Danish institutions in the danger zone include Danske Bank, Jyske Bank, Nordea, Spar Nord, and the country's biggest mortgage lender, Nykredit.

After cutting the ratings of six European nations including Italy, Spain and Portugal last Monday, Moodys warned it could strip France, Britain, Austria and others of their top-level AAA grade. It said in a statement released today: "Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions."

Professor Jesper Rangivid of Copenhagen Business School (CBS) called the downgrade threat an 'excessive reaction' which appears to be an overall evaluation of the current economic situation rather than individual banks. He said: "I'm surprised at the intensity of the warning, which comes at a time when struggling countries are showing slight signs of recovery. Interest rates have fallen which indicates that some form of stability has returned and the situation isn't as bad as it was last Autumn. I'm not saying the European economy is performing well but there is some momentum."

Professor Finn Østrup of the Institute for Finance at CBS warned that if credit ratings are downgraded throughout the EU it will hit Danish banks hard. "Danish banks are extremely dependent upon loans from abroad so a downgrade would affect them more than others," he said.