Norwich & Peterborough (N&P) has had its financial strength rating downgraded by Moody's, a week after the building society revealed it faces a £57m Keydata compensation bill.
The ratings agency last night lowered N&P's bank financial strength rating (BFSR) to D- from D. Moody's has also placed the building society's long term deposit rating on review, according to a note on the London Stock Exchange. N&P announced last week it has set aside £57m to cover compensation for some 3,200 customers it sold Keydata products, exceeding the building society's previous outside estimates for the bill of £50m. Before the Keydata provision, the company reported 2010 pre-tax profits of £5.1m, up from £1.3m in 2009. However once the cost of compensation is taken into ...
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