View more on these topics

Fitch downgrades Norwich & Peterborough

Fitch has downgraded Norwich & Peterborough, blaming pressure on the building society’s main source of earnings.

Fitch has downgraded N&P’s issuer default rating to BBB+ and individual rating to C, while affirming several of its other ratings.

Fitch says the downgrade reflects pressure on the society’s net interest revenue, which is its main source of earnings, especially given its fairly high cost base.

Fitch says this is likely to impact earnings over the short- to medium-term and it is concerned that this impact reduces the building society’s ability to absorb credit costs, or extend its franchise.

But Fitch says: “Credit risk is well managed and that credit costs are likely to be small relative to N&P’s equity base.

“The concentration in the society’s commercial loan book is small and the arrears performance of all major asset classes, including commercial lending, has been good to date.”

Fitch also said N&P’s liquidity is good, although balance sheet growth has been hindered by lack of wholesale funding.


Manager focus: Julius Lipner

Aviva’s latest recruit, Julius Lipner, has outlined the investment process he is using on the group’s recently-launched UK Absolute Return fund

Simon Fletcher

Auto-enrolment: pay attention or pay the price

By Simon Fletcher

As a chief executive officer of a business in the financial services sector, I have been dealing with the introduction of auto-enrolment for our clients for some time, but I can also speak from an employer’s point of view, having to go through the process ourselves.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm