CREDIT WATCH NEGATIVE

Fitch Downgrades UBS

Warns seven other banks they may soon follow.

The ratings agency Fitch downgraded the bank UBS’s credit rating on Thursday while warning eight other U.S. and European banks they could also be lowered soon due to the current economic climate. Fitch lowered UBS’s long-term issuer default rating to A from A+, and the agency said it is also reviewing Barclays Bank, BNP Paribus, Credit Suisse Group, Deutsche Bank, Société Générale, Bank of America, Morgan Stanley, and Goldman Sachs Group. They could soon be cut one notch, even two notches in some extreme cases. Earlier Thursday, Fitch lowered its ratings on the Royal Bank of Scotland and Lloyds Banking two notches from A to AA-. Fitch said concern over the European debt crisis, Bank of America’s business model, and exposure to mortgage-related litigation were the reasons behind the ratings action.