Barclays's Rating Cut by Moody's to Lowest Investment Grade
- Moody’s highlights key risks at volatile capital markets unit
- Investors shrug off the news, bank’s shares are up about 1%
Barclays Rating Cut by Moody's to Lowest Investment Grade
This article is for subscribers only.
Barclays Plc’s ratings were cut by Moody’s Investors Service, citing concerns about earnings at the investment bank after the British lender split its riskier trading activities from its retail operations.
Barclays overall debt rating was cut to one level above junk by Moody’s on Wednesday, which said the bank will face “ongoing profitability challenges” on top of the negative impact of ring-fencing. The bank’s 1 billion euros ($1.2 billion) of 1.375 percent senior unsecured bonds were little changed on Thursday, largely because executives had flagged a likely downgrade earlier in the year, according to analysts at Investec Plc.