Sky News reports that the move is expected as part of a broader credit downgrade of some of the world’s major banks including JP Morgan and is expected after the close of US markets at 10pm. Lloyds Banking Group may also be affected.
The move is a consequence of the ongoing Eurozone crisis and weak economic performance across the globe.
Moody’s recently downgraded Santander UK by one notch to A2 along with 16 Spanish banks as a result of the Spanish banking crisis and subsequent €100bn bailout.
Any downgrade will impact on the funding costs of major banks which have already been rising due to the Eurozone crisis despite low interest rates and falling Libor.
The FT reports today that loans could be provided at a rate as low as 1.2%.