The Co-op could require taxpayer support for its banking arm after the business had its credit rating downgraded by Moody's, which warned the mutual faced losses that it might not be able to afford.
The ratings agency warned that Co-op Bank might need "external support" as a result of new writedowns on bad debts linked to commercial real estate and belated costs linked to its acquisition of the Britannia Building Society in 2009, the Telegraph reports. The downgrade of Co-op Bank comes weeks after it pulled out of a deal to acquire 632 branches from Lloyds Banking Group that analysts thought could bolster the business. In a note published on Thursday night, Moody's said it believed the lender could need help from the authorities to fill any capital hole in its balance sheet, warn...
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