Moody’s could cut ratings on British banks
Moody’s rating agency has revealed it is investigating how the UK’s biggest banks would manage business without Government support.
The agency said it may downgrade the debt of its ratings of up to 18 UK banks to reflect the lower chance of a future Government bail-out.
According to the agency, those at risk are the smaller banks and building societies.
The rating agency said: “This reassessment could trigger negative outlooks, reviews for possible downgrade, or downgrades for some ratings, and will be taking into consideration Moody’s expectations on how the relevant banks’ standalone credit strength will develop.”
In the meantime, the larger bailed-out banks, including Lloyds and Royal Bank of Scotland, could be subject to negative outlooks in the latter half of 2011 when they will be reassessed further.