Fitch might cut 19 U.K. banking groups

Fitch Ratings said it placed the long-term issuer default ratings of 19 U.K. banking groups on rating watch negative.

The banks include Bank of Ireland (UK) plc, Barclays plc, Close Brothers Group, Co-operative Bank plc, Coventry Building Society, CYBG plc, HSBC Holdings plc, Investec Bank plc, Leeds Building Society, Lloyds Banking Group plc, Nationwide Building Society, Paragon Banking Group, Principality Building Society, Royal Bank of Scotland Group plc, Santander UK Group Holdings plc, Skipton Building Society, Tesco Personal Finance Group Ltd., Virgin Money Holdings (UK) plc and Yorkshire Building Society.

The banks' other ratings, including their viability ratings and debt ratings, are not affected by the action.

The agency said the actions follow Fitch placing the United Kingdom's long-term issuer default rating on rating watch negative on Feb. 20.

“The RWN reflects the heightened uncertainty over the ultimate outcome of the Brexit process and the increased risk that a disruptive ‘no-deal’ Brexit, where the U.K. leaves the E.U. without a withdrawal agreement in place, either in March or at the end of a short extension, could result in negative action on the U.K. banks, most likely with negative outlooks being assigned,” Fitch said in a news release.

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