Leading UK Banks Downgraded by Moody's
Written on 11 Oct, 2011 at 06:33 by Ulyana Chernyak
Yesterday, on October 10th, it was announced that the ratings agency Moody's sliced the ratings for 12 leading UK banks. However, Moody's experts claim that the downgrades have nothing to do with the strength of UK financial banking system.
The list of banks, which were affected by Moody's actions, includes but is not limited to: Royal Bank of Scotland, Lloyds TSB, Santander, Nationwide, Skipton, West Bromwhich, and many others. The two popular banks that retained their ratings were HSBC and Barclays.
Financial experts and the British government are determined that Moody's actions have to do with the state policy rather than with the banks' performance.
Commenting on Moody's actions, George Osborne said: “One of the reasons they're doing this is because they think the British government is actually moving in the direction of trying to get away from guaranteeing all the largest banks in Britain…Therefore credit rating agencies and others will say, well actually these banks have got to show they can pay their way in the world.”
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