Moody’s credit rating agency has downgraded its outlook for UK banks from stable to negative warning that the removal of government support and outstanding litigation issues will weigh on banks profitability and have increased the risks borne by creditors. Despite an acknowledgement that the UK economy has improved and continues to do so, Moody’s senior analyst said that this would not be enough to offset the negatives but also added that the baseline credit assessment of most UK banks continues to be stable. The news came on the same day that HSBC’s chairman warned of a growing danger that over regulation is stifling bankers willingness to take the necessary risks to compete and run profitable business.