Clydesdale delays IPO

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Clydesdale is delaying its planned IPO on the London Stock Exchange for 24 hours due to fresh rating agency queries.

A stock exchange announcement says the bank, which will trade as CYBG, successfully demerged from National Australia Bank today.

The announcement says: “CYBG has received a recent specific request from one of the rating agencies for certain financial information relating to its assessment of Clydesdale Bank’s short and/or long-term deposit rating.

“The deposit rating is utilised by certain secured funding programmes, which represent 13 per cent of CYBG’s total funding.

“The outcome of this assessment could be a near term downgrade of the short and/or long-term deposit rating or the placing of such rating on credit watch with negative implications.

“CYBG is expected to have a senior standalone investment grade credit rating.

“CYBG does not anticipate any such downgrade to have any material impact on its ability to raise funding, the overall cost of funding, or the financial outlook for CYBG.”

The bank adds that a downgrade of short or long-term deposit ratings would force it to alter its existing secured funding programmes.

It says: “This ratings development may not occur, and should it occur, is not considered material to the financial position and outlook of CYBG.

“However, given the proximity of this request to the IPO, NAB and CYBG have decided to delay finalisation of the IPO for 24 hours.”