Moody's Investors Service has cut Nomura Holdings Inc.'s credit rating two levels to Baa2, citing the damage done to its earnings by the global credit crisis.
"Challenges to stabilizing earnings will continue," Moody's said Wednesday. The ratings company also noted uncertainty about the integration of Lehman Brothers Holdings Inc. units acquired by Nomura last year.
Nomura now carries the second-lowest investment-grade rating from Moody's. The brokerage is cutting costs after posting a bigger than estimated loss in the quarter ended March 31. "Deterioration in the global investment climate may force the company to post additional losses, further delaying its earnings recovery," Moody's said.