Moody’s Investors Service has altered a number of its ratings on banks, including all of the big Canadian banks, following changes to its bank rating methodology, which incorporates joint default analysis.

It lowered the debt and deposit ratings of 44 banks, the ratings of two banks were confirmed. Of the 44 downgrades, 29 were one notch, 12 were two notches and 3 were three notches. It also upgraded the junior securities of 13 banks as the result of the refinement of its JDA methodology.

The refined methodology, released on March 30, reduces the level of external support incorporated into bank deposit and debt ratings in order to give greater weight to intrinsic financial strength. A number of bank ratings that were upgraded prior to the refinement were identified as being inconsistent with the refined methodology.

The ratings lowered by one notch include: CIBC, ING Bank and ABN Amro.

As for the banks that are seeing the ratings on their capital securities upgraded, the list includes: Bank of Montreal; Bank of Nova Scotia; Caisse Centrale Desjardins du Quebéc; Royal Bank of Canada; and TD Bank.

In the United States, the Bank of New York, JPMorgan Chase Bank, State Street Bank and Trust Co. and Wachovia Bank are also affected, along with several European banks.

CIBC and National Bank also had their subordinated securities upgraded, and their senior debt and deposit ratings lowered. As with the other 11 banks whose subordinated securities were upgraded, the upgrades for CIBC and National Bank result from the refinement of the notching methodology, whereby subordinated securities typically are notched one level below senior debt and deposits and preferred securities and certain deeply subordinated debt securities typically are notched two rating levels below senior debt and deposits.

Additionally, Moody’s raised the senior and subordinated debt and preferred stock ratings for The Bank of New York Company Inc., the holding company of the Bank of New York.