WASHINGTON - GLOBAL ratings agency Standard & Poor's on Friday lowered the credit ratings of 11 US and European banks by one or two notches on uncertainty over future performances amid financial turmoil.

Central banks around the world also on Friday moved to ease the credit crunch gripping the banking industry by announcing plans to pump more cash into the financial system, the US Federal Reserve said.

The banks affected by the S&P rating review were Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Royal Bank of Scotland, UBS and Wells Fargo.

S&P also revised its outlook on British giant HSBC Holdings and a number of its subsidiaries to negative from stable.

'The downgrades and revised outlooks reflect our view of the significant pressure on large complex financial institutions' future performance due to increasing bank industry risk and the deepening global economic slowdown,' the ratings agency said in a statement.

But it added that significant government intervention intended to stabilise the banking sector and restore public confidence 'may balance these pressures to a large extent'. The agency had raised earlier this month its 'overall assessment of bank industry risk' and believed there would be more volatility in funding markets.

The financial industry is grappling with a massive credit crunch despite aggressive moves by central banks to lash interest rates.

On Friday, the Federal Reserve said it, together with the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank, would hold auctions of US dollar liquidity to be conducted during the first quarter of 2009.

'These schedules cover operations providing 28-day and 84-day dollar liquidity,' a statement from the US central bank said. Details of other programmes will be announced separately by individual central banks.

'Central banks will continue to work together to address pressures in global money markets,' the statement said.

Another ratings agency, Moody's Investors Service, warned on Friday that liquidity would pose a growing threat to non-financial companies in the Americas, particularly for those with lower credit ratings and debt problems and weaker internal cash generation.

'Liquidity will be an increasing challenge during the next year as the global credit crisis continues to pressure non-financial companies,' said Moody's senior vice-president Glenn Eckert.

In its rating review, S&P lowered the senior unsecured debt ratings of Citigroup to 'A' from 'AA-', Goldman Sachs's long- and short-term counterparty credit ratings to 'A/A-1' from 'AA-/A-1+' and Morgan Stanley's counterparty credit rating to 'A/A-1' from 'A+/A-1+'.

It lowered its long-term counterparty credit rating on Bank of America and its senior unsecured debt ratings on JPMorgan Chase & Co to 'A+' from 'AA-'.

Credit Suisse's long- and short-term counterparty credit ratings were lowered to 'A+/A-1' from 'AA-/A-1+' and its long-term rating was lowered to 'A' from 'A+'.

The long- and short-term counterparty credit ratings on Deutsche Bank and the Royal Bank of Scotland were lowered to 'A+/A-1' from 'AA-/A-1+'.

S&P also lowered its long-term counterparty credit ratings on Swiss bank UBS AG to 'A+' from 'AA-' while Wells Fargo's long-term counterparty credit rating was lowered to 'AA' from 'AA+'.

The long-term counterparty credit rating on Barclays Bank was lowered to 'AA-' from 'AA'.

S&P also revised its outlook on HSBC to negative from stable. -- AFP