Moody's, whose founder John Moody created the first credit ratings for US railroad bonds in 1909, was forced to reverse upgrades for banks after criticism from firms such as Merrill Lynch & Co and JPMorgan Chase & Co. Eighty-five per cent of investors in a Merrill survey last month said Moody's had lost credibility because of the approach. Icelandic lenders Kaupthing hf, Glitnir Banki hf and Landsbanki Islands hf had some of the biggest ratings cuts, dropping three levels to Aa3. Three steps was the largest downgrade Moody's said it was considering for the banks it placed under review earlier this month.