9th Feb 2016 16:09
LONDON (Alliance News) - Fitch Ratings assigned new ratings to CYBG PLC's Clydesdale Bank's ratings, and also assigned new ratings to CYBG itself, CYBG said Tuesday.
Fitch assigned CYBG a BBB+ (stable outlook) rating, downgrading it from A to reflect the removal of parental support from the National Australian Bank Ltd following the demerger, a short term issuer default rating of F-2 and a viability rating of BBB+.
In addition, the ratings agency assigned to the GBP475 million 5% fixed rate reset callable subordinated tier 2 notes due in 2026 a rating of BBB and a BB- rating to the GBP450 million 8% fixed rate reset perpetual subordinated contingent convertible notes.
"CYBG again welcomes the allocation of an investment grade rating to the newly created CYBG PLC entity, reflecting its low risk profile, sound asset quality, healthy liquidity and improved capitalisation," said CYBG.
On Monday, Standard & Poor's Ratings Services affirmed the long and short-term credit ratings of Clydesdale at BBB+/A-2 with a stable outlook, and assigned to CYBG new long and short-term credit ratings of BBB-/A3 also with a stable outlook.
In addition, S&P assigned to the GBP475 million 5% fixed rate reset callable subordinated tier 2 notes due in 2026 a rating of BB, and to the GBP450 million 8% fixed rate reset perpetual subordinated contingent convertible notes a rating of B.
CYBG shares were down 4.8% to 193.25 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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