Fitch changes Nationwide Building to negative

Fitch Ratings said it revised the outlook on Nationwide Building Society's long-term issuer default rating to negative from stable and affirmed the rating at A+ and viability rating at a.

Fitch said the outlook revision reflects its view that Nationwide's buffer of qualifying junior debt (QJD) might over time reduce and become insufficient to allow for the uplift of Nationwide's long-term issuer default rating above the viability rating.

“Nationwide has stated that while to date it had intended to use Tier 2 debt, which is included in Fitch's QJD, to meet minimum requirements for own funds and eligible liabilities (MREL), it would shift its focus to senior non-preferred debt, which is not included in QJD, if this becomes an option for the society,” the agency added in a news release.

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