Counterparty risks in the $60,000bn credit default swap market pose greater potential threats to banks and dealers than other over-the-counter derivatives markets such as interest rate swaps, according to a report by Moody's Investors Service.

The ability of securities dealers such as Goldman Sachs, Morgan Stanley and UBS to manage the risks related to credit derivatives was a "particular area of focus" in assessing the dealers' credit ratings, Moody's said.