11th Feb 2016 16:05
LONDON (Alliance News) - Clydesdale Bank PLC, part of CYBG PLC, on Thursday noted that ratings agency Fitch has downgraded the ratings of the bank's covered bonds to AA+, outlook stable, from AAA and rating watch negative.
The ratings action follows the downgrade of Clydesdale Bank's long-term issuer default rating to BBB+ from A.
"The issuer remains confident as to its ability to comply with its contractual obligations under the programme," Clydesdale said.
The move by Fitch follows a review of Clydesdale Bank by Moody's Investors Service, which last week resulted in one upgrade, two downgrades and one affirmed rating.
Moody's upgraded Clydesdale's standalone Baseline Credit Assessment to baa3 from ba1, but downgraded the Long Term Deposit Rating for to Baa2 from Baa1 with a Stable outlook. The Short Term Deposit Rating was affirmed at Prime-2, while the Commercial Paper Rating was downgraded to Prime-3 from Prime-2.
Shares in CYBG were down 1.6% at 185.50 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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