Moody’s cuts ratings of UK banks

October 19th, 2011 by James

Moody's cuts ratings of UK banksThe credit rating of two top UK banks was cut by Moody’s recently because of the likelihood of less state support in a future crisis.

Moody’s cut its rating on Royal Bank of Scotland by two notches, downgraded Lloyds by one notch, and cut its ratings on Santander UK, the Co-Operative Bank, Nationwide Building Society, and seven other smaller British building societies.

From in.finance.yahoo.com:

Banks had been on review for possible downgrade as part of a trend where state support for lenders is being reduced, and reforms proposed last month by Britain’s Independent Commission on Banking (ICB) had been expected to have a negative influence.

“The market’s central expectation around the ICB impact had been for a 2-notch downgrade across the board, so it’s better than expected,” said Gareth Hunt, analyst at Investec.

But concern is growing that banks may need more capital as part of a wider European move to shore up the industry to tackle a debt crisis and restore investor confidence. The European Union plans to present a plan for member state to coordinate a bank recapitalisation.

“I am confident that British banks are well capitalised, they are liquid, they aren’t experiencing the kind of problems that some of the banks in the euro zone are experiencing at the moment,” UK finance minister George Osborne said in an interview with BBC radio.

Be Sociable, Share!

    Tags: ,

    • Comments Off on Moody’s cuts ratings of UK banks
    • Posted in Reviews

    Comments are closed.

    Market and Business Related

    Luxury car sales in India reached new heights in 2010

    Luxury car sales in India reached new heights in 2010

    Asian shares and euro ease

    Asian shares and euro ease

    Success secrets of business owners

    Success secrets of business owners

    Berlin Wants Greece To Stay In Euro Zone, Says Germany’s Vice Chancellor

    Berlin Wants Greece To Stay In Euro Zone, Says Germany’s Vice Chancellor

    Make money with effective marketing tips

    Make money with effective marketing tips

    Online Presence – Is Your Business Empowered with it?

    Online Presence – Is Your Business Empowered with it?

    wordpress seo

    %d bloggers like this: