In the last five years Moody's has raised the average credit rating of the top European banks, but it has simultaneously dropped the average rating on their debt securities. This 'paradox' is down to new EU regulations on bail-inable bonds, the agency said.
Moody's said in a report this week that the average credit rating of debt issued by the 40 largest rated banks in Europe had dropped by one notch to Baa1.
But banks are on the whole much safer, according to the rating agency. Indeed, the average baseline credit