Fitch lowers Lloyds Banking

Fitch Ratings said it downgraded Lloyds Banking Group plc's long-term issuer default rating and long-term senior unsecured debt rating to A from A+ and tier 2 debt rating to BBB+ from A-.

“The downgrade of LBG's IDR and senior debt to the level of its viability rating (VR), and of the tier 2 debt, reflects our expectation that the group's consolidated qualifying junior debt buffer (QJD) buffer will not be rebuilt and maintained at over 10% of risk-weighted assets (RWA),” Fitch said in a press release.

Fitch also affirmed at A+ the long-term IDRs of LBG's subsidiaries Lloyds Bank plc, Bank of Scotland plc, HBOS plc, Lloyds Bank Corporate Markets plc and Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH, as well as their long-term senior unsecured debt ratings. LBG and its subsidiaries' other ratings are not affected.

The outlooks of all entities are negative.

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