StanChart debt rating steady despite allegations on Iran
WASHINGTON (AFP) - Moody's held Standard Chartered Bank's debt rating steady at A1 on Tuesday, one day after the bank was threatened with loss of its New York banking license over alleged illegal dealings with Iran.
Moody's said nothing concrete yet had happened to reduce the bank's creditworthiness, after New York State's Department of Financial Services accused Standard Chartered of willfully hiding some US$250 billion (S$310 billion) in financial transactions with Iranian banks over nearly 10 years in violation of US law.
The state regulator, which oversees the hub of the United States banking industry, said the bank faced closure of its huge New York US dollar clearing business and possibly loss of its banking license if it could not adequately explain its actions.
The bank, which disputes the regulator's assertions, also risked massive fines for the activity, which allegedly violated US sanctions set against Tehran over its nuclear program.