Newspaper article The Evening Standard (London, England)

Moody's Cuts Barclays Credit Rating on Nationalisation Fear

Newspaper article The Evening Standard (London, England)

Moody's Cuts Barclays Credit Rating on Nationalisation Fear

Article excerpt

Byline: BILL CONDIE

BARCLAYS Bank was back on the rack today after Moody's downgraded its credit ratings. The ratings agency dropped Barclays' long-term debt two notches from Aa1 to Aa3.

Barclays shares plunged last month on fears it would be nationalised, concerns that Moody's said were justified.

"Although Barclays has not taken any government capital to date, Moody's considers the systemic importance of the bank and the likelihood of receiving government support in case of need to be high," the agency said in its statement.

It expected the bank to record "significant further losses" on creditrelated writedowns.

On top of that, Moody's said that Barclays may have to book more bad loans as the recession in the UK deepens. Such concerns outweighed Barclays' strong franchise and strong deposit base, Moody's said.

Barclays opened down 10.3p at 95.8p.

The move is a bitter blow for the bank that just a week ago was assuring investors of annual profits of [pounds sterling]5. …

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