The FSA has moved to reassure HBOS investors on the financial resilience of the UK's largest mortgage and savings organisation.
HBOS shares plummeted 22% yesterday after an 18% decline on Monday, as fears mounted the bank could be the next credit crunch casualty. However, the regulator says HBOS is a “well-capitalised bank that continues to fund its business in a satisfactory way”. Ratings agency S&P yesterday cut HBOS’ long-term counterparty credit ratings from AA- to A+, the fourth-highest investment grade. Analyst Nigel Greenwood says HBOS was “less well positioned” to manage the deteriorating operating environment than AA- rated peers. Fitch cut the company's long-term issuer default ratings to AA from AA+...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
