Barclays credit rating now in jeopardy
Source: Agencies |
July 6, 2012, Friday
|
Print Edition
Print Edition
TWO leading credit rating agencies took steps yesterday toward downgrading Barclays in the wake of a trading scandal that's seen three senior officials, including chief executive Bob Diamond, resign.
Though both Moody's and Standard & Poor's maintained their ratings on the bank, they lowered their outlooks to "negative" from "stable." That means that a downgrade of the actual rating is now more likely.
Barclays did receive some respite from another of the three big agencies, Fitch Ratings, which said its view was unaltered by the interest rate scandal and resignations.
Although Fitch said political, regulatory and reputation risks for Barclays and other major global banks had increased, it added "the direct implications (for Barclays), in terms of the size of the regulatory settlements announced last week, are easily manageable given its capital and earnings capacity."
The other two agencies took a less generous view.
S&P said its revised outlook reflected, in part, "our view that the impact on Barclays' overall franchise may persist for an extended period, which in turn could lead to both weaker and less stable revenue generation."
Moody's said it was concerned the resignations and the consequent uncertainty about the company's direction could negatively impact on bondholders.
Though both Moody's and Standard & Poor's maintained their ratings on the bank, they lowered their outlooks to "negative" from "stable." That means that a downgrade of the actual rating is now more likely.
Barclays did receive some respite from another of the three big agencies, Fitch Ratings, which said its view was unaltered by the interest rate scandal and resignations.
Although Fitch said political, regulatory and reputation risks for Barclays and other major global banks had increased, it added "the direct implications (for Barclays), in terms of the size of the regulatory settlements announced last week, are easily manageable given its capital and earnings capacity."
The other two agencies took a less generous view.
S&P said its revised outlook reflected, in part, "our view that the impact on Barclays' overall franchise may persist for an extended period, which in turn could lead to both weaker and less stable revenue generation."
Moody's said it was concerned the resignations and the consequent uncertainty about the company's direction could negatively impact on bondholders.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
