UK banks’ stock falls after threat of downgrades

Published on Thursday 16 February 2012 11:45

The UK’s biggest banks suffered stock market falls today after an influential credit ratings agency threatened more than 100 lenders with downgrades.

Barclays, Royal Bank of Scotland and HSBC were among 122 financial institutions to have their ratings placed under review by Moody’s, which cited difficult market conditions and the ongoing threat from the eurozone debt crisis.

Moody’s downgraded several European countries earlier this week and said the outlook for the UK’s gold-plated status had turned negative, which would have a knock-on effect on banks.

It said increased regulatory burdens, with banks being required to store more cash to protect them against future financial crises, had diminished their profitability and growth prospects.

Barclays, HSBC and RBS were all down 1% today, while Lloyds was also lower.

Confidence in the sector was also hit after French bank Société Générale said net profit for final quarter of 2011 tumbled 89% to 100 million euros (£83.6 million) as it took further write-downs on its Greek sovereign bonds.

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Gorgie Trolley

Friday, February 17, 2012 at 12:41 AM

Moodies and Standard & Poors didn't predict the failure of Fannie Mae and Freddie Mac. --------------------------------------------------------------------------------------------------With what authority do they claim the right to judge countrries' economies?

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Newferryman

Thursday, February 16, 2012 at 11:18 PM

3. Exactley. This was being used as a reason to stay in the union. Like all other excuses, they fall through the fingers like sand.

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samcoldstream

Thursday, February 16, 2012 at 07:54 PM

Its ironic that, earlier this week, it was claimed the credit rating of any hypothetical Scottish State would be nowhere the prize triple AAA. Now Moody's has threatened the UK with a downgrade, and this has now affected its financial services.

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A Friend of Fernando Poo

Thursday, February 16, 2012 at 01:16 PM

Let the deadbeat banks go bankrupt and use the subsidy cash for the real economy.

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KINGFISHER1

Thursday, February 16, 2012 at 12:12 PM

RESERVED AND REDACTED FORMAL AT COMMENTS. EL DORADO

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