Fitch Ratings

minisue

Hi. im looking to put a lump sum away and have been checking out the fitch ratings, can anyone tell me why the Halifax (HBOS) is AA rating but the outlook is negative? what does that mean? Also for Kap. Edge is says negative aswell.

Lokolo

What site are you using to see these?

purch

why the Halifax (HBOS) is AA rating but the outlook is negative

Just because a 'bunch of *"%$**' like to spend their time gossiping and posting rumours on this site and others about the long term prospects of large Banks, it doesn't mean necessarily that in reality their 'outlook is negative'

What makes you think HBOS senior debt shouldn't still be AA (Fitch & S&P) or Aa1 (Moody's) ??, or their sub debt A and Aa2 ??

Are you expecting a default ??

minisue

i was looking at the site fitchratings.com. Im only asking what does it mean? as i havnt had a lump sum of money to put away before i just want to make sure i put it somewhere as save as i can, cant afford to lose it.

im looking at all the savings rates of all the banks and building societys.

Mr_Mumble

"Negative" just means Fitch are looking at the possibility of downgrading from the current "AA" rating.

Simplified example (that'll differ depending on the particular rating agency):
AA/Negative = weighted towards a possible downgrade to A
AA/Positive = weighted towards a possible upgrade to AAA

KeithEssex_2

minisue wrote: »

i was looking at the site fitchratings.com. Im only asking what does it mean? as i havnt had a lump sum of money to put away before i just want to make sure i put it somewhere as save as i can, cant afford to lose it.

im looking at all the savings rates of all the banks and building societys.

Firstly, don't put more than £35,000 with any single FSA registered institution.

If you are risk adverse then I suggest that you don't go for any Icelandic or Nigerian institution. Whilst you will be covered by the FSCS guarantees I suspect you won't enjoy the worry of having your funds with them over the period. Iceland has a very poor economy at present. Nigeria is hardly a bastion of financial best practice.

If someone is paying significantly more than someone else there is usually a reason.

On that basis I would stick with one of the major UK building societies:-

* Halifax have a good range of fixed term websavers from 3 months and beyond.
* Yorkshire BS and Chelsea BS are offering 6.50% AER for 2 year bonds.

I appreciate you can get a higher rate elsewhere but these are more risky companies.

minisue

Thank you both for your answers i now understand.

Another question if u dont mind, Company Bonds are they covered by the FSA compensation scheme just the same as savings accounts and also i am a non tax payer so can i reg. not to pay tax with the bonds aswell?