Moody’s downgrades all long-term ratings of Danske Bank

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Oct 12 (Reuters) – Rating agency Moody’s Investors Service said on Friday it has downgraded all long-term debt ratings of Danske Bank A/S because of the criminal investigations into the bank by the U.S. Department of Justice.

The scandal involves 200 billion euros ($231 billion) in transactions processed by Denmark’s biggest bank via its Estonian branch between 2007 and 2015.

The bank’s long-term deposit and senior unsecured debt ratings were cut to ‘A2’ from ‘A1’ while its junior senior unsecured debt ratings were downgraded to ‘Baa2’ from ‘Baa1’, Moody’s said in a statement. The rating agency maintained a negative outlook on the bank.

The bank said earlier on Friday it has started closing down parts of its Estonian business.

($1 = 0.8648 euros)

(Reporting by Kanishka Singh in Bengaluru; Editing by Elaine Hardcastle)