Ratings agency Moody’s says it is reviewing 14 British banks and building societies for a possible downgrade due to concerns the UK Government would be less likely to bail-out troubled institutions in future.
In a statement released this morning, the ratings agency listed the lenders including Lloyds Banking Group, Royal Bank of Scotland and Santander.
The full list is: Lloyds Banking Group, RBS, Santander UK, Bank of Ireland UK, Co-operative Bank, Coventry building Society, Nationwide Building Society, Newcastle Building Society, Norwich & Peterborough Building Society, Nottingham Building Society, Principality Building Society, Skipton Building Society, West Bromwich Building Society and Yorkshire Building Society.
Moody’s says the reassessment was triggered by guidance from UK authorities “that banks that fail in the future should not expect capital injections from the public purse”.
Moody’s senior credit officer Elisabeth Rudman says: “It is not driven by either a deterioration in the financial strength of the banking system or that of the Government.”