Fitch: Barclays view negative

Fitch Ratings said it affirmed Barclays Bank plc's long-term issuer default rating and senior unsecured debt at AA+, its subordinated debt and other preferred and hybrid securities at AA, short-term issuer default rating at F1+, individual rating at A/B, support rating at 1 and support rating floor at A-.

Also affirmed were Barclays plc's long-term issuer default rating at AA+, short-term issuer default rating at F1+ and support rating at 5 and no floor.

The outlook was changed for the issuer default rating to negative from stable.

The action follows Barclays Capital's net writedowns of €1.3 billion for asset-backed securities, collateralized debt obligations, subprime loans, structured investment vehicles and leveraged finance positions, the agency said. The company still reported record earnings of €1.9 billion, Fitch noted.

"The writedowns announced today are substantial but can be absorbed in the context of Barclays' strong cash generation," James Longsdon, senior director in Fitch's financial institutions group, said in a written statement.

"The revision of Barclays' outlook to negative reflects our concerns that the continuing expansion of Barclays Capital might expose the group to greater risks and earnings volatility, which could lead to a ratings downgrade," Longsdon said.

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