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"The move [by the ECB] in itself will not lead to any improvement in [banks'] credit ratings"
- Scott Bugie, S&P's Managing Director
S&P top official warned Friday that record 489 billion euros allotted between 523 European banks by the ECB will not protect them from threatened rating downgrades.
"The move in itself will not lead to any improvement in [banks'] credit ratings," said S&P's Managing Director of its Financial Institutions division, Scott Bugie.
"The operation is a big deal. It's half a trillion euros of three-year money at an ultra-low rate. It is not solving the fundamental issues though... It's kicking the can a long way down the road rather than just a little bit but in the end it is still kicking the big old can down the road."
"The ECB action doesn't change the fundamental picture but it does buy valuable time and it will be taken into account when we do our analysis to resolve the credit watch actions."