July 5, 2012 - 11:53 AMT
PanARMENIAN.Net - Moody's Investors Service on Thursday, July 4 changed the outlook on Barclays Bank plc's C-/baa2 standalone bank financial strength rating (BFSR) to negative from stable, citing the uncertain management outlook.
According to Reuters Moody's said the change reflected concerns that the senior resignations at the bank and the consequent uncertainty surrounding the firm's direction were negative for bondholders.
"Specifically, the shareholder and political pressures on Barclays, which resulted in the resignation of the bank's CEO, COO (previously the head of the investment bank) and the stated intention of the Chairman to resign, could lead to broader pressure on the bank to shift its business model away from investment banking and reform perceived failures in its business culture," the agency said.
The C-/ baa2 standalone BFSR as well as the A2 long-term and Prime-1 short-term debt ratings remain unchanged. The A2 senior debt and deposit rating already has a negative outlook due to Moody's expectation that the UK government will reduce its support for large UK banks over the medium term.