RBS welcomes Moody’s credit rating upgrade
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Royal Bank of Scotland has said it welcomes the decision by credit ratings agency Moody’s to upgrade the still 71 per cent state-owned lender’s senior debt ratings and the deposit ratings.
The Edinburgh-based bank said the move was the result of an upgrade of the Baseline Credit Assessment to investment grade, baa3 from Ba1 for RBS and its subsidiary, NatWest.
It said the rating action “reflects Moody’s recognition of the stronger standalone financial profile of the group and expectation for more stable performance in the medium term resulting from the group’s multi-year restructuring”.
Moody’s have also affirmed the senior debt ratings at RBS and NatWest, which RBS said reflects the agency’s assessment that the volume of loss absorbing debt supporting senior debt under Moody’s Advanced Loss Given Failure analysis has reduced faster than their original estimates, resulting in a lower loss given-failure notching.
Ewen Stevenson, chief financial officer, said “Becoming investment grade rated for our long term ratings across all three credit rating agencies has been an important goal for us. It is further external validation that our turnaround is now well progressed.”
Summary of Moddy’s actions:
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