26th Feb 2016 15:09
LONDON (Alliance News) - Standard & Poor's on Friday said it could cut its credit rating on Standard Chartered PLC, following the emerging markets bank's first annual loss since 1989.
Standard Chartered PLC saw its A- rating put on watch by Standard & Poor's.
"We could lower the ratings on Standard Chartered PLC, Standard Chartered Bank, and its subsidiaries by a notch, if we believe the group's intrinsic creditworthiness has deteriorated," said S&P credit analyst Terry Sham.
S&P said there is "elevated uncertainty over the bank's ability to defend its competitive position, manage its risk exposure, and recover its profitability over the next two to three years" due to its weak performance and restructuring amid a tough macroeconomic environment.
On Tuesday, London-listed Standard Chartered reported a USDSD1.52 billion pretax loss in 2015, which measured up against a pretax profit of USD4.24 billion the prior year. S&P noted that the loss was due to "a substantial revenue decline and a spike in nonperforming loans and impairment losses".
Shares in Standard Chartered were up 7.0% at 426.45 pence on Friday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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