And as the UK's debt problem will take longer to get under control, there will be a deterioration of the country's "shock-absorption capacity".

BBC: Q&A: UK credit rating downgrade

The downgrades were "driven by the increased risk of further shocks emanating from the euro-area debt crisis, in combination with the banks' limited loss-absorption capacity, " Moody's said.

WSJ: European Banks��Large and Small��Rely on ECB

German banks are at risk of continued asset deterioration as the crisis grows and the global economy slows, and they have limited-loss absorption capacity to face a stress scenario.

FORBES: German Banks Don't Have Enough Capital To Face A Severe Downturn, Moody's Says