After Downgrading Canadian Banks Wednesday, Moody's Downgrades Canada's Economy Thursday

Canadian banks, dependent on the nation’s increasingly indebted consumers, were downgraded by Moody’s Wednesday, and on Thursday the bank was out with a research report downgradingthe economic prospects for the nation. In a research report, Moody’s pointed toconsumer indebtednessand the bank’s vulnerability in the case of an economic downturn as causation for the decision. The Canadian dollar was sharply lower early Thursday morning against the US currency but has since recovered, trading down only -0.20% in late afternoon New York trading.

Six largest Canadian banks hold 93% of system assets

On Thursday, Moodys analysts David...