How save is the Co-Op on credit watch?

MattOl

The daily telegraph and Reuters have reported that S&P and Fitch have put the Co-Op on 'negative watch' which seems to refer to their credit rating (Google co-op negative watch).
This is apparently a downgrade which doesn't sound like good news. Should I close my account? I know that the government guarantees some our your money but this would take time to come through and is a hassle I could do without. Are they safe? What are other other co-op customers doing?

HappyMJ

Very safe...It's the long term credit that has been downgraded. Nothing much for customers to worry about at this stage. However, saying that you should hedge your bets and spread your money between two unrelated institutions in case anything goes a miss such as with the Natwest problems a few weeks back. If you have two places where your money is you can still access some.

grey_gym_sock

'negative watch' just means the agency might (or might not) reduce the rating (if they do, probably by just 1 level).

some of the lower rating levels might be a cause for concern, but there are a number of higher levels, any of which would be fine. so going down 1 level doesn't mean anything unless you know what level they're on to start with, and it's the lowest level you'd be happy with.

(i've no idea what level co-op are on to start with.)

jack_spratt_2

If you are worried about the Co-op then you should be worried about all financial institutions .
The Co-op is very conservative about the risks they take as there members are the shareholders and they do not need to generate large profits hence take less risks .
The Co-operative movement was once described as a sleeping giant and I think that is the case .
The reason for the downgrade was because of the takeover of the Lloyd s branches which are being sold which in the long term will turn the Co-op into a major player on the high street it was nothing to do with the strength of the Bank.

Hope that puts your mind at ease

Most of the major banks have had some type of downgrade over the years