RBS Plummets After First Credit Rating Downgrade in a Decade
By Poppy Trowbridge
Oct. 7 (Bloomberg) -- Royal Bank of Scotland Group Plc, the U.K.’s second-biggest bank, slumped as much as 30 percent in London trading after the bank had its credit rating cut for the first time in 10 years on a weak “financial profile.”
Edinburgh-based RBS fell 44.5 pence to 103.6 pence at 9:02 a.m., extending yesterday’s 23 percent decline and trimming its market value to 17.1 billion pounds ($30 billion). The lender had its long-term and short-term counterparty credit ratings lowered Oct. 6 to A+/A-1 from AA-/A-1+ by the London-based analysts at Standard & Poor’s. Last time the rating was reduced was in 1998.
“RBS’s financial profile may continue to weaken,” Standard & Poor’s said in a statement, citing a “combination of mixed earnings prospects, deteriorating credit risk in its key geographies, and difficult market conditions” in which to shore up its capital.
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RBS Plummets After First Credit Rating Downgrade in a Decade
By Poppy Trowbridge
Oct. 7 (Bloomberg) -- Royal Bank of Scotland Group Plc, the U.K.’s second-biggest bank, slumped as much as 30 percent in London trading after the bank had its credit rating cut for the first time in 10 years on a weak “financial profile.”
Edinburgh-based RBS fell 44.5 pence to 103.6 pence at 9:02 a.m., extending yesterday’s 23 percent decline and trimming its market value to 17.1 billion pounds ($30 billion). The lender had its long-term and short-term counterparty credit ratings lowered Oct. 6 to A+/A-1 from AA-/A-1+ by the London-based analysts at Standard & Poor’s. Last time the rating was reduced was in 1998.
“RBS’s financial profile may continue to weaken,” Standard & Poor’s said in a statement, citing a “combination of mixed earnings prospects, deteriorating credit risk in its key geographies, and difficult market conditions” in which to shore up its capital.
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