Fitch cuts Standard Chartered

Fitch Ratings said it affirmed Standard Chartered Bank's long-term issuer default rating at A+ and downgraded Standard Chartered plc's issuer default rating to A from A+.

The outlooks are stable.

The short-term issuer default ratings were affirmed at F1 and their viability ratings at a.

The agency said the downgrade follows the consolidated qualifying junior debt buffer, which is made up of additional tier 1 and 2 instruments, falling below 8% of risk-weighted assets.

“There are no regulatory incentives for SC to restore and maintain the buffer at a significantly higher level,” Fitch said in a news release.

“We maintain the uplift on SCB's IDR above its viability rating because we expect the QJD buffer to be complemented by senior holding-company debt, which will be downstreamed in a subordinated manner to SCB to comply with total loss absorbing capital (TLAC) and minimum requirement for eligible liabilities (MREL) requirements from 2019.”

© 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.