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Kashkari Says Bank Downgrades Are ‘Non-Factor’ for Pimco

Pacific Investment Management Co.’s Neel Kashkari, who heads global equities at the Newport Beach, California-based investment firm, said downgrades of banks by Moody’s Investors Service weren’t of consequence for the firm.

“For Pimco, it was a non-factor,” Kashkari said today in an interview on Bloomberg Television’s “In the Loop with Betty Liu.” The firm takes risk “exceptionally seriously” and does its own credit work on a bank by bank basis before trading, Kashkari said.

Credit Suisse Group AG’s credit rating was cut three levels by Moody’s, Morgan Stanley was reduced two levels and 13 other banks were downgraded.

To contact the reporter on this story: Alexis Leondis in New York at aleondis@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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