Moody´s downgrades Clydesdale Bank´s debt
Clydesdale and Yorkshire Banking Group would no longer be able to count on support from its former parent following its flotation and a shift in its liability structure meant senior deposits and creditors would be left exposed to higher risk, Moody´s said on Thursday.
As a result, the ratings agency downgraded its rating on the lender´s long-term credit rating from Baa1 to Baa2 - although it remained investment grade - and that on its commercial paper from Prime-2 to Prime-3.
However, CBYG, which began conditional trading on the London Stock Exchange on Wednesday, said Moody´s change of heart would have no material impact on its or the bank´s ability to raise funding, the overall cost of funding or its financial outlook.
CBYG´s standalone baseline credit assessment on the other hand was lifted from ba1 to baa3.