LONDON, February 16 (FinanceEnquiry.com) - Moody’s Investors Service has decided to review its rating for 114 major European banks, including Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), and Deutsche Bank (NYSE: DB), and eight other banks based elsewhere, such as JPMorgan Chase (NYSE: JPM), Bank of America Corp (NYSE: BAC) and Nomura Holdings (NYSE: NMR), in the wake of increasingly challenging market conditions.

Moody’s has indicated that it could lower some credit ratings by as much as three levels, based on the risks to the banks’ investment banking models and large capital market exposures. In a statement issued after the closure of markets in New York, Moody's said that the combination of modified operating stipulations and raised regulative requisites and restrictions has decreased these firms’ long-term profitability and growth prospects. Lengthened euro crisis, worries about government debt and risks associated with big capital market businesses are said to be the reasons for this ratings review.

Following Moody's statement, banking stocks fell all across Europe today. Barclays shares fell 1.5 percent, HSBC was down 1.2 percent, while Société Générale and Crédit Agricole, both fell more than 3 percent.