Belgium, Denmark, France, Italy, the Netherlands and Spain — six of Europe’s 10 largest banking systems — have had their outlooks changed by ratings agency Moody’s from negative to stable, reflecting the improved economic outlook one year on from the start of the Covid-19 pandemic.
“The changes in outlooks reflect our expectation that the deterioration in asset risk will be moderate and that profitability will recover as economies improve following sharp real gross domestic product declines in 2020,” said Louise Lundberg, a senior credit officer at Moody’s.
