Moody’s changes Nationwide Building view to stable

Moody’s Investors Service said it affirmed the senior unsecured debt ratings of Nationwide Building Society and changed the outlook to stable from negative.

“Moody’s previously had a negative outlook on Nationwide’s senior unsecured debt ratings, to reflect the risk that the society would not issue the debt that it envisaged under its funding plan, resulting in lower protection for senior unsecured debt in the medium term. Moody’s had noted that Nationwide is not obliged to issue unsecured debt in excess of its maturities to comply with any regulatory requirements,” the agency said in a press release.

Nationwide sold a €1 billion senior preferred bond on July 15.

“As a result, Moody’s believes that it is now more likely that Nationwide will issue sufficient unsecured debt in the next 12-18 months to maintain a sustainable very low loss-given-failure for its senior unsecured debt, underpinning the outlook change to stable from negative,” Moody’s said.

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