Moody's puts 14 UK lenders on review for possible downgrade
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Moody’s Investors Service has today announced that it is reviewing the ratings of 14 UK banks and building societies for possible downgrade.
Moody’s has placed under review for possible downgrade the long-term ratings of UK financial institutions which - in its assessment - incorporate levels of government, or systemic support in their ratings that the rating agency may now deem to be too high for the evolving post-crisis environment.
The list includes Lloyds TSB bank, Santander UK and Royal Bank of Scotland.
The list also includes, Bank of Ireland (UK), Co-Operative Bank, Coventry Building Society, Nationwide Building Society, Newcastle Building Society, Norwich & Peterborough Building Society, Nottingham Building Society, Principality Building Society, Skipton Building Society, West Bromwich Building Society and Yorkshire Building Society.
Elisabeth Rudman, a senior credit officer at Moody’s, says: “The reassessment is not driven by either a deterioration in the financial strength of the banking system or that of the government.
“It has been initiated in response to ongoing guidance from the UK authorities, the Bank of England, the Financial Services Authority and the Treasury. that banks that fail in the future should not expect capital injections from the public purse.”
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