Moody’s says high debt levels and soaring house prices could be bad news for Canada’s big banks, and has downgraded their credit rating as a result.

Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada and Royal Bank of Canada all saw their credit ratings cut by one notch late Wednesday.

Moody’s cited a “more challenging operating environment for banks in Canada for the remainder of 2017 and beyond.”

“Today’s downgrade of the Canadian banks reflects our ongoing concerns that expanding levels of private-sector debt could weaken asset quality in the future,” Moody’s vice-president David Beattie said.

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