2nd Feb 2016 15:22
LONDON (Alliance News) - Moody's Investors Service on Tuesday said it is continuing to review whether to downgrade its ratings on Standard Chartered PLC and its main operating entity.
The ratings agency, which expects to conclude its review in March after the bank reports earnings for 2015 later this month, placed the long-term ratings of SCPLC and SCB on review on November 9, 2015.
Moody's review focuses on the "likely drag" on profitability from a new strategic plan set out by Chief Executive Bill Winters over the next several years, as well as the "likely further deterioration" in the group's asset quality, "considering the changes in its operating environment, portfolio mix and risk appetite".
"The review of SCPLC's and SCB's long-term deposit and instrument ratings will also consider the group's liability structure at end-2015. Under Moody's Advanced Loss Given Failure analysis, a material change in the liability structure can affect the loss-given-failure for different classes of creditors and therefore result in rating changes," Moody's said.
Shares in Standard Chartered were down 6.6% at 429.55 pence on Tuesday afternoon. The group will report earnings for 2015 on February 23.
By Samuel Agini; [email protected]; @samuelagini
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