Ratings agency Standard&Poor's (S&P) overnight cut its long-term counterparty credit ratings on three European banks - Barclays, Deutsche Bank and Credit Suisse - by one notch, to A from A+. The outlook on all of the ratings is 'stable' at the moment. In its analysis the agency highlights the noxious mix of factors which, in their view, imply a greater degree of risk for those who invest in these banks' debt. For Ishaq Siddiqi, Market Strategist at ETX Capital, the above constitutes a "backward looking move by S&P who are behind the curve addressing these issues faced by European investment banks."Global banks are under increased pressure now to meet stricter capital requirements together with new regulations which will change the face of the sector. As well, just yesterday the President of the Federal Reserve bank of New York, Charles Dudley, cited the protracted recession in Europe as one of the main factors holding back growth in the United States this year. In S&P's words "we consider that these banks' debt holders face heightened credit risk owing to the industry's tighter regulation, fragile global markets, stagnant European economies and rising litigation risk stemming from the financial crisis. A large number of global regulatory initiatives are increasingly demanding for capital market operations."AB