25th May 2018 07:45
LONDON (Alliance News) - Moody's Investors Service late Thursday assigned two Lloyds Bank Corporate Markets PLC programmes its scale's highest short-term provisional rating.
The issuer is part of Lloyds Banking Group PLC.
Moody's assigned the Commercial Paper and Certificate of Deposits programmes, which allow issuance of up to EUR5 billion, the P-1 rating reflecting the bank's A1 long-term deposit rating and A1 issuer rating.
The P-1 its the highest short-term rating in Moody's scale meaning the issuers or supporting institutions have "superior ability to repay short-term debt obligations".
The bank's baa3 baseline credit assessment and the probable support from Lloyds Group, which results in a two-notch uplift to an adjusted BCA of baa1, are among the reason for the rating.
The "extremely loss-given-failure and the probability of government support were also taken into consideration.
"[Lloyds Bank Corporate Markets'] baa3 BCA reflects the bank's sound capitalisation and ample liquidity. These strengths are balanced against the bank's high single name and sector concentration, operational risks, assets with a naturally higher risk profile than ring-fenced Lloyds Bank plc, and limited operating history under a non-ring-fenced structure," Moody's said.
Related Shares:
Lloyds