Moody's slashes debt ratings for UK building societies
The UK building society sector was today shaken by a substantial downgrading of debt across the board. A number of well-known UK building societies have seen their debt ratings slashed to junk bond status after a review by the credit ratings agency Moody's. While there have been issues with some building societies in the UK the reduction of some ratings to near junk bond status is a major blow.
The Chelsea building society, which has around 500,000 savers and 90,000 mortgage holders, saw its own debt side from C to E+ while the West Bromwich saw a slide from C- to E+. Even such giants as the Nationwide did not escape the red pen of Moody's with a reduction from B to C-. Not only does this increase finance costs for these operations but it has also caused a number of investors to think about the safety of their funds.
The Building Societies Association has come out in support of the sector as a whole with a suggestion that the review of the sector by Moody's is "over pessimistic". This is just one sign that the UK recession, while showing signs of bottoming out, could turn again if any unforeseen circumstances occur.
Share this..
Related stories
Are our MPs being treated differently from taxpayers?
As news emerges that 27 MPs are under investigation by the tax authorities, with one MP potentially under investigation by the police, there are concerns that UK MPs are being treated differently from everyday taxpayers. A number of cases of alleged fraudulent activity have already been clarified and the very fact that Parliament has asked a number of MPs to repay significant amounts of money is a...
Read MoreWill MPs never learn?
Despite the fury over the MPs expenses saga, new receipts published today show that many MPs are continuing to claim for expenses which many people would consider outside of their working life. We have seen a defence minister submitting a claim for over £20,000 to repair a bell tower and the roof of this country home, we have seen Gordon Brown claiming £500 to paint a building in his garden (an...
Read MoreAlistair Darling announces new banking watchdog
Alistair Darling has today announced more detail regarding his attempt to hand power back to UK businesses that are refused credit through the UK banking system. He has also announced plans to reduce bonuses already agreed at Lloyds bank and Royal Bank of Scotland if executives miss new lending targets. But are these two issues really credible? While there is no doubt that many businesses react...
Read MoreJon Moulton to leave Alchemy Partners
Private equity pioneer Jon Moulton has today announced that he will be leaving Alchemy Partners, the buyout company he set up more than 10 years ago, after an apparent disagreement regarding future strategy. He had originally been expected to retire in October 2010 but this has now been brought forward and the relevant parties are now in discussions regarding a financial payoff.
Mou...
Would you still look overseas for your bank account?
The collapse of various Icelandic banking operations continues to hit both UK corporates and UK investors heavily with many still awaiting for their compensation. This particular saga has given many investors a serious reality check with regards to their overseas bank accounts and their willingness to chase the best interest rates. In basic terms, any return over and above the average will certain...
Read More