Fitch revises Virgin Money view to stable

Fitch Ratings said it revised the outlook on Virgin Money plc's long-term issuer default rating to stable from positive and affirmed the rating at BBB+.

The agency also affirmed Virgin Money’s viability rating at bbb+.

Fitch said the outlook revision reflects its view that pressure on the bank's planned growth and diversification has increased. The outcome of the European Union referendum in June will likely result in a slowdown in economic growth over the next two years, which could result in slowing business volume growth at Virgin Money and reduce its ability to diversify its businesses further.

“Lower for longer” base rates may also put further pressure on margins given the bank's business model, the agency added.

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