Moody's cuts Barclays rating outlook to negative
Ratings agency Moody's has changed its outlook for Barclays's standalone bank financial strength rating (BFSR), currently at C-/baa2, to negative from stable.
Ratings agency Moody's has changed its outlook for Barclays's standalone bank financial strength rating (BFSR), currently at C-/baa2, to negative from stable.
The A2 senior debt and deposits rating had already been lowered to a negative outlook due to expectations that the UK will reduce its support for the financial sector over the medium term.
"Specifically, the shareholder and political pressures on Barclays, which resulted in the resignation of the bank's Chief Executive Officer (CEO), Chief Operating Officer and the stated intention of the Chairman to resign, could lead to broader pressure on the bank to shift its business model away from investment banking and reform perceived failures in its business culture," Moody's said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Moody's said that the bank could be challenged to replace the three senior staff, particularly a CEO that has sufficient expertise in investment banking to run Barclays but "also has the credibility and ability to swiftly address the weaknesses that the LIBOR incident revealed and stakeholders' perceptions of the investment bank."
SC
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published