Moody Downgrades Rating Of UK Financial Firms

543

Context

The financial rating agency Moody, has downgraded the credit ratings of 12 UK financial firms. Financial organizations such as Llyods, TSB, RBS, Nationwide and Santander UK were among those downgraded with shares in RBS and Lloyds down by 3.7% and 2.7% respectively making them FTSE’s 100’s biggest fallers. Seven UK building societies and nine Portuguese banks also faced cuts in their ratings.

Moody’s ratings are based on its reassessment of the support environment in the UK, with the company believing the government to be less likely to support firms seen as “too big to fail.” Analysts have however warned the report should not be taken out of proportion. Max King, a portfolio manager at Investec Asset Management, said: “People are getting a little paranoid about the UK banking sector.