4th Feb 2016 10:20
LONDON (Alliance News) - A review into the ratings for CYBG PLC's Clydesdale Bank has been concluded by Moody's Investors Service, CYBG said on Thursday, resulting in one upgrade, two downgrades and one affirmed rating.
The ratings agency 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.
Concurrently, Moody's affirmed the bank's long-term and short-term Counterparty Risk Assessment at A3(cr)/P-2(cr).
"CYBG does not consider the downgrade of the Long Term Deposit and Commercial Paper Rating to have any material impact on its or the bank's ability to raise funding, the overall cost of funding, or the financial outlook for CYBG or the bank," CYBG said in a statement.
In a separate statement, CYBG said it will begin trading on the Australian Securities Exchange on February 17. Conditional dealings began in London on Wednesday, with unconditional trading set for Monday next week.
The news comes after CYBG on Wednesday said its initial public offering was priced at the lower end of the expected range amid volatility in financial markets, valuing the lender at GBP1.58 billion. At 180.0 pence per share, the IPO price was towards the bottom of the guided range of between 175.0p and 235p per share. Shares in CYBG were trading up 3.0% at 197.75p in conditional dealings Thursday morning.
The CYGB IPO comprised an offer of 219.8 million shares in CYBG by National Australia Bank, equivalent to a 25% stake in the lender, including 28.7 million shares available under an over-allotment option. At the same time, a demerger of National Australia Bank's remaining 75% stake in CYBG is being effected through a distribution of shares to the parent's own shareholders.
The IPO had to be delayed by 24 hours on Tuesday as a result of a request for information from an unnamed ratings agency. CYBG didn't directly state Thursday that Moody's was that ratings agency, but in its announcement Thursday, the company referred to its announcement on Tuesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
CYBG