Forum Home» Budgeting & Bank Accounts

MSE News: Banks' credit ratings downgraded

New Post Advanced Search

MSE News: Banks' credit ratings downgraded

edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
14 replies 3.3K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
This is the discussion thread for the following MSE News Story:

"A ratings agency has slashed the credit ratings of some of Britain's biggest banks to reflect reduced Government support ..."
Read the full story:


Banks' credit ratings downgraded



OfficialStamp.gif
«1

Replies

  • Doesn't make any difference to the average Joe. Only people who buy bank debt or invest very large sums in these banks need to evaluate the new scores.
  • MandelbrotMandelbrot
    9.1K posts
    Rampant Recycler
    ✭✭✭✭
    So what?
    Makes no practical difference to most of the people on this forum.
  • jjjennyjjjenny Forumite
    31 posts
    It's been coming for a while, with splitting the investment banks from the day to day banks, I spotted it as soon as the announcements were made ages ago. Lets face it, I have been winding up my friend who banks with Santander for up ages that her bank was next to fall, I'm suprised it's not been downgraded further to "G" for Greek or "J" for Junk.
  • MandelbrotMandelbrot
    9.1K posts
    Rampant Recycler
    ✭✭✭✭
    Bit pointless downgrading the Norwich & Peterborough BS.
    It's only got 3 weeks left! :D
    (Merges with Yorkshire BS on 1st November)
  • JRsruleJRsrule Forumite
    37 posts
    Will that be the same credit ratings agencies which told us that all the bundles of debt were AAA? The bundles of debt that turned out to be bad debt, and caused the whole mess we are in now?

    I'll make my own mind up thanks!
  • aptapt Forumite
    3.1K posts
    Part of the Furniture 1,000 Posts
    ✭✭✭✭
    And that the Icelandic banks were AA. Who rates the rating agencies?
  • Doesn't make any difference to the average Joe. Only people who buy bank debt or invest very large sums in these banks need to evaluate the new scores.


    Are you sure? Poorer credit rating for these banks mean higher interest charges for money they need to borrow mean higher charges for anyone looking to borrow. That could be you or I? And, what if there's a further loss of confidence among institutions investing in these banks. A further reduction of their credit rating? What is going to stem the loss of confidence if it's not the UK government with promises of more bailouts?
    "I think you'll find it's a bit more complicated than that."
  • MobeerMobeer Forumite
    1.8K posts
    Part of the Furniture 1,000 Posts Photogenic
    ✭✭✭
    apt wrote: »
    And that the Icelandic banks were AA. Who rates the rating agencies?

    The investors, who choose to listen to or not listen to the ratings
  • ConsumeristConsumerist Forumite
    5.4K posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    Mandelbrot wrote: »
    Makes no practical difference to most of the people on this forum.
    Well, it might. If it costs them more to borrow on the money markets then it might encourage them to increase their interest rates to savers. :)
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Why don't they simplify the ratings?

    A to Z with A being good and Z being virtually insolvent.

    All the Aa2a+ and A2+ nonsense ... how are you meant to underatand good and bad at a glance from that?

    (An !!! covering act from the rating agencies by the way, making up for them missing the possibility of the Credit Crunch).
This discussion has been closed.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support