Remember back a couple weeks ago when Moody’s downgraded Bank of America and Citigroup on the grounds that future government support was not assured?
Welll, Moody’s just did its UK-side version of the same thing.
Moody’s said Friday that the downgrades include a two-notch downgrade to A2 for government-controlled Royal Bank of Scotland, and a one-notch cut to A1 for Lloyds TSB Bank, a unit of part-nationalized Lloyds Banking Group.
Spanish bank Santander had its British business downgraded by one notch to A1, while Nationwide Building Society suffered a two-notch reduction to A2. However, there were no changes in the ratings of Barclays PLC and HSBC PLC.
Despite the move, the FTSE 100 index is up 1%.