In the run-up to Moody’s downgrades in its credit ratings for 15 global banks yesterday, corporate treasurers reviewed their banking relationships, according to a Reuters story. Some treasurers have added more banks to their credit facilities or made changes in their deposit arrangements. Meanwhile, banks are reaching out to their corporate clients to reassure them about their creditworthiness and issue warnings about their competitors.
When Lehman collapsed in 2008, companies that banked with Lehman were left scrambling. Now it’s common for credit facilities to include a provision that lets companies exclude a bank if it seems to be in danger of reneging on a commitment.