Moody's noted there had been recent instances where losses had been imposed on subordinated debt holders without any significant contagion to other liability classes. "Consequently, there would need to be very clear reasons for Moody's to consider retaining an assumption of support in subordinated debt ratings," it warned. Nations affected by review were listed as Austria (nine banks), Belgium (three), Cyprus (two), Finland (three), France (seven), Italy (17), Luxembourg (three), Netherlands (six), Norway (five), Poland (one), Portugal (two), Slovenia (two), Spain (21), Sweden (four) and Switzerland (two).
Moody's also warned that the risk to ratings on subordinated debt could extend outside the borders of the European Union. "Moody's will also review to what extent other closely integrated markets outside the EU, such as Norway or Switzerland, are affected by this change in its support assumptions," it said.