S&P cuts Nationwide Building

Standard & Poor's said it lowered its long-term counterparty credit rating on Nationwide Building Society to A from A+.

At the same time, the agency affirmed the A-1 short-term counterparty credit rating.

The outlook is negative.

In addition, S&P lowered its rating on Nationwide's dated subordinated debt to BBB from BBB+ and the ratings on its junior subordinated debt (permanent interest-bearing shares) to BBB- from BBB.

The downgrade reflects S&P's view that Nationwide's overall loss experience is no longer materially superior to peers and that its balance sheet leverage is high, according to a news release.

S&P said the effect of this is that the combined view of Nationwide's capital and earnings and risk position is now a neutral factor for the rating, having previously been a positive.

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