NEW YORK ( TheStreet) -- The traditional banking sector is bracing for downgrades in the weeks ahead, and it's enough to keep the stock market spooked for a while longer.
Moody's Investors Services recently indicated that it's likely to reduce the credit ratings on close to 17 big banks by the end of June.
Sources tell me that this will include five or six of the largest financial companies in the U.S. If the downgrades occur, it will most likely raise the cost of debt issuance and curtail some of their more lucrative activities.
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