Fitch puts Lloyds on watch

Fitch Ratings said it placed Lloyds TSB Group plc's long-term issuer default rating of AA+ on Rating Watch negative.

The actions follow Lloyds' plan to buy HBOS for £12.2 billion.

Fitch said it considers Lloyds, the smaller party in the merger in consolidated assets, to be a very conservatively managed bank that has been relatively unaffected by the credit crisis.

While the equity funding supports ratings, the watch reflects concerns over the potential impact on the group's credit profile of owning lower-rated HBOS, the agency noted

HBOS' ratings reflect its high exposure to the deteriorating U.K. property market and relatively greater reliance on the stressed wholesale funding markets to finance its customer lending, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.