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Ratings agency plays down upbeat bank results

Despite positive interim results from all major UK banks, Standard & Poor’s says that a sustained im-provement in their performance is far from certain.

In a recent report the ratings agency says several banks remain overly reliant on wholesale funding that is government guaranteed or central bank funded. It adds that the banks also face significant refinan-cing requirements over the next couple of years.

The report says: “We expect eco-nomic and market developments that are largely beyond the control of banks’ management teams to continue to disproportionately in-fluence bank ratings through the remainder of 2010.”

It expects muted credit demand, zero to negative loan growth and fierce competition for customer deposits.

The report adds: “We believe that bank ratings may become more stable if the economic recovery does not stutter and funding mar-kets demonstrate a more consistent degree of normality.”


Crown gets an upgrade from ratings agency

Fitch Ratings has upgraded UK servicer ratings for Crown Mortgage Management. It has also removed Crown from its Rating Watch Evolving status.


Check the potential of landlord business

The rental property market is thriving despite or partly because of the economic slowdown. From individuals who rent out second homes through to entrepreneurs, activity is buoyant. That said, overall the market is subdued, with lending flat over the past five quarters. With a market of over 1.2 million buy-to-let mortgages there is an enormous […]


Guidance is needed not scaremongering

I am sure I was not alone in being shocked by headlines in The Sunday Telegraph recently suggesting interest rates could hit 8% in two years. In much smaller print it was pointed out that this was radical new research and could only happen if a number of key factors were to collide. They were […]


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