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.
RBS Plummets After First Credit Rating Downgrade in a Decade
ReplyDeleteBy 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.