Moody’s Investors Service today downgraded the senior debt and deposit ratings of 12 UK financial institutions. The study concluded that the government would be less likely to provide support for them in case they get mired in financially trouble.
The rating actions include a one-notch downgrade of Lloyds TSB Bank plc (to A1 from Aa3), RBS (to A2 from Aa3), Santander UK plc (to A1 from Aa3), Co-Operative Bank plc (to A3 from A2), a two-notch downgrade of RBS plc (to A2 from Aa3) and Nationwide Building Society (to A2 from Aa3); and downgrades of one to five notches of 7 smaller building societies. The ratings of Clydesdale Bank were confirmed at A2 (negative outlook).
“Moody’s believes that the government is likely to continue to provide some level of support to systemically important financial institutions, which continue to incorporate up to three notches of uplift,” it said in a statement..
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