Dutch and Belgian banks downgraded

ING, ABN AMRO and KBC Group, were among the banking groups in Belgium and the Netherlands to be downgraded

 
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There are concerns that the recession and local debt crisis is making the banks vulnerable.

“Dutch banks will face difficult operating conditions throughout 2012 and possibly beyond,” Moody’s said in the statement. The region “is affected by the ongoing euro area debt crisis and regional economic weakness,” it said.

Debt-ratings at ING, Rabobank Nederlands, ABN AMRO Bank and LeasePlan Corporation had their long-standing ratings slashed by two points, while SNS Bank was downgraded one level, according to a Moody’s statement. Belgium’s biggest bank and insurer, KBC Groep was downgraded two levels.

Moody’s has also recently cut the ratings on several Spanish and Italian lenders.

The cuts contribute to the tense atmosphere in Europe following Spain’s bailout last weekend. The general election in Greece this Sunday is also expected to hurt financial confidence.