London, 30 April 2020 -- Moody's Investors Service (Moody's) today took rating actions
on five UK lenders: it downgraded the Baseline Credit Assessment
(BCA) and all long-term ratings of Nationwide Building Society
(Nationwide) and Nottingham Building Society (Nottingham), and it
affirmed the BCA and all ratings of Principality Building Society (Principality)
and TSB Bank plc (TSB), and it affirmed the BCA, deposit and
issuer ratings of Tesco Personal Finance plc (Tesco Bank).
The outlooks on the long-term deposit and senior unsecured debt
ratings of Principality were changed to negative from stable, the
outlooks on the long-term deposit and issuer ratings of Tesco Bank
to stable from positive, and the outlooks on the long-term
deposit ratings of Nottingham and TSB remain negative. The outlook
on Nationwide's long-term deposit ratings was changed to
stable from negative, while the outlook on its senior unsecured
debt rating remains negative.
Moody's said that today's actions on UK lenders reflects pre-existing
financial pressure for the affected issuers, likely exacerbated
by the coronavirus outbreak.
A full list of affected ratings can be found at the end of this press
release.
RATINGS RATIONALE
The UK is one of the countries facing a severe and extensive credit shock
from the rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices,
and asset price declines. Moody's expects the banking sector
to be affected by the shock through weaker profitability and asset quality.
Prior to the outbreak of the coronavirus, Moody's had already
expected a weakening operating environment in the UK and deteriorating
asset quality and profitability, which in turn drove a negative
outlook on the long-term deposit and senior unsecured debt rating
of many lenders, including many of the largest UK banks and UK ring-fenced
subsidiaries, and a negative outlook on the UK banking system.
Mortgage lenders were facing additional profitability challenges due to
contracting margins and strong competition.
Moody's said that the coronavirus outbreak, which the rating
agency regards as a social risk under its ESG framework given the substantial
implications for public health and safety, will exacerbate these
negative pressures. In particular, the rating agency expects
a decrease in revenues due to mandatory lockdown measures, an increase
in credit losses and provisions from corporate and retail clients,
an increase in the inflow of new problem loans, and a further contraction
in net interest margins. Moody's expects that UK banks and
building societies will maintain strong capital and liquidity despite
these negative pressures, based on the rating agency's current
macroeconomic forecasts (see 28 April 2020 update of Global Macro Outlook
2020-21: Global recession is deepening rapidly as restrictions
exact high economic cost, https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1212762).
The Bank of England and the UK Treasury have taken a series of unprecedented
direct and indirect measures to support the economy including business
tax relief, grants and guaranteed loans for small and medium sized
corporates and a commercial paper facility available to large rated corporates
as well as capped payments of wages for furloughed workers and for the
self-employed. In addition, the Prudential Regulation
Authority and the Financial Conduct Authority have issued guidance relaxing
capital and liquidity buffer requirements, and they instructed banks
and non-bank lenders to provide payment holidays on mortgages,
credit cards and various forms of personal loans to previously performing
customers now affected by the coronavirus crisis. Moody's
believes that these measures will help to limit the likely deterioration
of banks' asset quality and profitability. However,
these measures will unlikely be sufficient to offset the higher credit
risk triggered by a prolonged coronavirus-induced slowdown in economic
activity. For this reason, the rating agency maintains a
negative outlook on the UK banking system and on several ratings of UK
lenders not affected by this action.
One of the measures taken by the Bank of England was to lower the base
rate twice: to 0.25% from 0.75%[1]
and subsequently to 0.1%[2]. These reductions
will help to reduce asset quality deterioration for UK banks and building
societies. A new term funding scheme from the Bank of England giving
banks access to cheap rates will only partially offset the additional
margin contraction driven by the lower base rate.
SPECIFIC ANALYTICAL FACTORS FOR THE AFFECTED BANKS
NATIONWIDE BUILDING SOCIETY
-- BCA AND RATINGS
Moody's downgraded the BCA of Nationwide Building Society (Nationwide)
to baa1 from a3, reflecting the rating agency's expectations
that the decline in the society's profitability in recent years
is now unlikely to be reversed. Problem loans are currently very
low but asset quality will deteriorate in light of the economic shock
caused by the spread of coronavirus. The society has good loss
absorption capacity given high risk-weighted capital ratios,
offset by weaker leverage metrics and a concentration of revenue and risks
in UK residential mortgages.
The downgrade of Nationwide's long-term deposit and senior
unsecured debt ratings to A1 from Aa3, and junior senior unsecured
debt rating to Baa2 from Baa1, reflect (1) the downgrade of the
BCA; (2) unchanged very low loss-given-failure for
depositors and senior bondholders, resulting in a two-notch
uplift from the BCA, and high loss-given-failure for
the junior senior unsecured and subordinate bondholders, resulting
in ratings one-notch below the BCA; and (3) a moderate probability
of government support for depositors and senior unsecured debt,
resulting in a further one-notch uplift.
-- OUTLOOK
Moody's maintained a negative outlook on Nationwide's senior unsecured
debt ratings, reflecting the risk that the society issues less debt
than envisaged under its current funding plan, resulting in lower
protection for senior unsecured bondholders in the medium term.
The outlook on Nationwide's long-term deposit rating is now
stable, reflecting the rating agency's expectation that the
society's asset quality and risk-weighted capitalisation
will, despite some deterioration, remain strong under Moody's
current macroeconomic forecasts and in line with the baa1 BCA.
-- FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF
THE RATINGS
Nationwide's BCA could be upgraded if (1) the prospects for the
UK's economy and institutions were to stabilise or improve; (2) Nationwide's
profitability improved; and (3) the society increased its stock of
high-quality liquid assets.
An upgrade of the BCA would likely result in an upgrade of all long-term
ratings of Nationwide.
A downgrade of Nationwide's BCA could be driven by (1) a deterioration
of the UK operating environment beyond Moody's current expectations,
or (2) a sharp deterioration in the society's stock of problem loans,
leverage or profitability.
A downgrade of the BCA would result in a downgrade of all long-term
ratings of Nationwide. Furthermore, the senior unsecured
debt rating would be downgraded if Nationwide issued less debt than envisaged
under its current funding plan.
NOTTINGHAM BUILDING SOCIETY
-- BCA AND RATINGS
Moody's downgraded the BCA of Nottingham Building Society (Nottingham)
to baa2 from baa1, reflecting the rating agency's view that
Nottingham's weakening profitability is unlikely to recover to the
historical levels, due to structural challenges stemming from the
society's limited scale. The recent reduction in revenues
among mortgage lenders, brought about by the low interest rate environment
and intense competition in the mortgage market, has had a particularly
negative impact on Nottingham's profitability, as compared
to peers.
Nottingham's credit profile is supported by its excellent asset
quality, with the loan book concentrated in high-quality
prime mortgages, as well as its solid capitalisation, particularly
given the low risk profile of the loan portfolio, and a concentration
of revenue and risks in UK residential mortgages.
The downgrade of Nottingham's long-term deposit ratings to
Baa2 from Baa1 reflects: (1) the downgrade of the BCA to baa2 from
baa1; (2) moderate loss-given-failure for depositors,
which does not result in any uplift from the BCA; and (3) a low probability
of government support, which does not result in any uplift.
-- OUTLOOK
The negative outlook on Nottingham's long-term deposit ratings
reflects Moody's view that Nottingham's profitability may
deteriorate further given the continued decline in its loan book.
-- FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF
THE RATINGS
A rating upgrade is unlikely given the negative outlook. The outlook
could return to stable if Nottingham stabilises its profitability and
improves its operating efficiency, while maintaining strong asset
quality, as well as solid capitalisation and liquidity and funding
profiles.
Nottingham's BCA could be downgraded in the event of (1) a deterioration
of the UK operating environment beyond Moody's current expectations;
or (2) continued weakening of the society's profitability,
as well as deterioration in asset quality, capitalisation,
or its funding structure and liquidity position. A downgrade of
the society's BCA would likely result in a downgrade of all ratings.
Nottingham's deposit ratings could also be downgraded in response to a
reduction in the volume of debt or deposits that could be bailed in,
which would increase the loss-given-failure for these instruments.
PRINCIPALITY BUILDING SOCIETY
-- BCA AND RATINGS
Moody's affirmed the BCA and all ratings and assessments of Principality
Building Society (Principality).
The affirmation of Principality's BCA of baa2 reflects the society's
solid financial performance, notwithstanding the profitability challenges
currently experienced by the mortgage lending sector. The affirmation
of the BCA also reflects the continued progress Principality has made
in reducing its legacy second-charge loan portfolio, but
also the existence of a commercial loan book, comprising residential
and commercial property exposures. The latter exposes the society
to increased risks as a result of the business disruption and economic
shocks caused by the coronavirus crisis. Also incorporated in Principality's
baa2 BCA is its strong capitalisation and concentration of revenue and
risks in UK residential mortgages.
The Baa2 deposit and senior unsecured debt ratings reflect (1) Principality's
baa2 BCA; (2) moderate loss-given-failure for depositors
and senior bondholders, which does not result in any uplift;
and (3) low probability of government support, which also does not
result in any uplift.
-- OUTLOOK
Moody's changed the outlook on Principality's long-term deposit
and senior unsecured debt ratings to negative from stable, reflecting
the rating agency's view that the society's exposure to commercial
real estate could result in additional asset quality deterioration in
the current economic environment in addition to that driven by weakening
credit in its mortgage book, leading to higher credit losses.
-- FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF
THE RATINGS
A rating upgrade is unlikely given the negative outlook. The outlook
could return to stable if Principality demonstrates solid financial performance
over the next 12-18 months, without a meaningful deterioration
in asset quality and profitability, while maintaining solid capitalisation,
liquidity and funding.
Principality's BCA could be downgraded in the event of (1) a deterioration
in profitability and asset quality beyond Moody's expectations,
and (2) a deterioration in capitalisation or in its funding structure
and liquidity position. A downgrade of the society's BCA would
likely result in a downgrade of all ratings.
Principality's long-term senior unsecured debt and deposit ratings
could also be downgraded in response to a reduction in the volume of debt
or deposits that could be bailed in, which would increase loss-given-failure
for these instruments.
TESCO PERSONAL FINANCE PLC
-- BCA AND RATINGS
Moody's affirmed the BCA, Adjusted BCA, and deposit and issuer
ratings of Tesco Personal Finance plc (Tesco Bank) and all rating of its
holding company Tesco Personal Finance Group plc (Tesco Bank Group).
At the same time, Moody's downgraded by a notch Tesco Bank's
long-term Counterparty Risk (CR) Ratings and CR Assessment.
The affirmation of Tesco Bank's BCA and deposit and issuer ratings
reflects (1) the BCA of baa1, underpinned by the bank's very
strong capitalisation that provides protection against the lower profitability
and weaker asset quality resulting from the economic shock generated by
the spread of the coronavirus in the UK; (2) unchanged results of
Moody's forward-looking Advanced Loss Given Failure (LGF) analysis,
implying moderate loss-given-failure for Tesco Bank's depositors
and holders of senior unsecured bank debt, resulting in long-term
deposit and issuer ratings in line with the BCA, as well as a high
loss-given-failure for holders of structurally subordinated
senior unsecured debt issued by Tesco Bank Group, resulting in ratings
one notch below Tesco Bank's BCA; and (3) a low probability
of government support, also unchanged, which does not result
in any uplift. As part of this rating action, Moody's downgraded
by a notch Tesco Bank's long-term CR Ratings to Baa1 from A3 and
CR Assessment to A3(cr)/P-2(cr) from A2(cr)/P-1(cr) due
to Tesco Bank's revised funding plan which incorporates lower debt issuance
volumes than previously assumed resulting in reduced subordination for
senior ratings.
-- OUTLOOK
Moody's changed to stable from positive the outlook on the long-term
deposit and issuer ratings. The outlook change reflects Tesco Bank's
revised funding plans which incorporate lower debt issuance volumes than
previously assumed resulting in an elimination of the upward pressure
on the senior ratings per Moody's Advanced LGF analysis. The stable
outlook reflects Moody's expectation that Tesco Bank will continue to
perform in line with its baa1 financial profile, despite pressures
on profitability and asset quality due to the expected weakening in the
UK's operating environment.
-- FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF
THE RATINGS
Tesco Bank's deposit and issuer ratings could be upgraded because of (1)
an upgrade of the bank's BCA due to improvement in the financial indicators
of the bank, in particular in its solvency and liquidity; or
(2) the issuance of a large amount of senior or subordinated bail-in-able
debt by the bank or by its holding company. An upgrade of the BCA
is conditional upon an upgrade of the weaker credit standing of its parent,
Tesco Plc. Currently, Tesco Bank's BCA is positioned
in line with the bank's financial profile and at the upper limit
of the two notch differential that Moody's considers consistent
with the strong commercial links with Tesco Plc (long-term rating
of Baa3, stable).
Tesco Bank's BCA could be downgraded if the rating of Tesco Plc were to
be downgraded. Tesco Bank's BCA could also be downgraded as a result
of (1) a deterioration in its asset quality and profitability beyond Moody's
expectations; and (2) a significant deterioration in its liquidity
and funding metrics. A lower BCA would likely lead to a downgrade
of all the ratings. The ratings could also be downgraded should
its unsecured debt decline relative to the bank's total balance sheet,
resulting in higher loss-given-failure for unsecured creditors.
TSB BANK PLC
-- BCA AND RATINGS
Moody's affirmed all ratings of TSB Bank plc (TSB) and TSB Banking
Group plc (TSB Group). Moody's also affirmed TSB's BCA and Adjusted
BCA at baa2, as well as its CR Assessments at A3(cr)/P-2(cr).
The affirmation of TSB's baa2 BCA reflects the bank's: (1) high
quality loan portfolio, consisting mostly of mortgages; (2)
weak profitability given the large inherited cost base; (3) solid
risk-based capital levels; (4) large proportion of retail
deposits in its funding profile and a large stack of liquid assets;
and (5) concentration of revenue and risks in UK residential mortgages.
Moody's believes that the bank's revised strategy focusing
on cost containment will support its future profitability. In addition,
the operational and execution risk related to TSB's IT migration
challenges in 2018 has materially lessened, as the bank reorganised
its management structure and IT governance, and subsequently demonstrated
successful client management and improved customer satisfaction.
Moody's also believes that the tail risk stemming from potential
regulatory actions related to the IT migration will be manageable for
TSB, given its solid capitalisation, as well as potential
recoveries under insurance claims.
TSB's BCA of baa2 exceeds the BCA of its parent Banco Sabadell,
S.A. (Sabadell, deposit rating Baa2, senior
unsecured debt Baa3 stable, BCA ba2) by three notches. This
differential reflects the very limited connections between the two institutions,
plans to retain the TSB brand name, and expectations that the UK
Prudential Regulation Authority will continue to ensure that TSB maintains
solid capitalisation and strong liquidity, before any dividends
are allowed to be paid.
The Baa2 long-term bank deposit and issuer ratings of TSB,
as well as the Baa3 issuer rating and subordinated debt rating of TSB
Group, are underpinned by (1) TSB's BCA of baa2; (2) the results
of Moody's LGF analysis, which lead to no uplift for TSB's
ratings and a negative one-notch adjustment from the BCA to the
ratings of TSB Group; (3) and our assumption of a low probability
of government support, resulting in no further rating uplift.
-- OUTLOOK
The negative outlook reflects Moody's expectation that TSB's
profitability will remain under pressure, as the bank continues
executing on its strategic plan, which includes optimising its cost
structure with branch closures and other budget initiatives, as
well as investments in its technology platform. Moody's believes
that pressures on TSB's profitability will be further exacerbated
by the economic shock generated by the spread of the coronavirus in the
UK, likely resulting in reduced revenues, an increase in loan
losses and increased provisions.
-- FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF
THE RATINGS
TSB's BCA is unlikely to be upgraded given the negative outlook.
The outlook could be revised to stable if the banks improved and stabilised
its profitability, while maintaining solid asset quality and capitalisation,
with no deterioration in its liquidity and funding profile.
TSB's deposit and issuer ratings could also be upgraded if the bank were
to issue significant amounts of long-term debt, including
structurally subordinated debt issued through its holding company.
TSB's BCA could be downgraded if the bank's profitability
and asset quality prove to be materially weaker than anticipated by Moody's,
or if the bank's weak profitability during the period of its strategic
repositioning were accompanied by a meaningful reduction in capitalization.
TSB's BCA could also be downgraded if Sabadell's BCA were
downgraded. A downward movement in TSB's BCA would likely result
in a downgrade of all its ratings. TSB's deposit and issuer ratings
could also be downgraded in response to a reduction in the volume of its
deposits or debt that could be bailed in, which would increase the
loss-given-failure for depositors.
Any increase in the interdependence between TSB and its parent,
in the absence of an upgrade of Sabadell's BCA, could result in
negative pressure on TSB's ratings.
LIST OF AFFECTED RATINGS
Issuer: Nationwide Building Society
Downgrades:
....Long-term Counterparty Risk Ratings,
downgraded to Aa3 from Aa2
....Long-term Bank Deposits,
downgraded to A1 from Aa3, outlook changed to Stable from Negative
....Long-term Counterparty Risk Assessment,
downgraded to Aa3(cr) from Aa2(cr)
....Baseline Credit Assessment, downgraded
to baa1 from a3
....Adjusted Baseline Credit Assessment,
downgraded to baa1 from a3
....Senior Unsecured Regular Bond/Debenture,
downgraded to A1 from Aa3, outlook remains Negative
....Commercial Paper/Certificate of Deposit
Programme, downgraded to A1 from Aa3
....Senior Unsecured Medium-Term Note
Program, downgraded to (P)A1 from (P)Aa3
....Junior Senior Unsecured Regular Bond/Debenture,
downgraded to Baa2 from Baa1
....Junior Senior Unsecured Medium-Term
Note Program, downgraded to (P)Baa2 from (P)Baa1
....Subordinate Regular Bond/Debenture,
downgraded to Baa2 from Baa1
....Subordinate Medium-Term Note Program,
downgraded to (P)Baa2 from (P)Baa1
....Preferred Stock Non-cumulative,
downgraded to Ba1(hyb) from Baa3(hyb)
..Affirmations:
....Short-term Counterparty Risk Ratings,
affirmed P-1
....Short-term Bank Deposits,
affirmed P-1
....Short-term Counterparty Risk Assessment,
affirmed P-1(cr)
....Commercial Paper, affirmed P-1
....Other Short Term, affirmed (P)P-1
..Outlook Action:
....Outlook changed to Stable(m) from Negative
Issuer: Cheshire Building Society
..Downgrade:
....Backed Preferred Stock Non-cumulative,
downgraded to Ba1(hyb) from Baa3(hyb)
..No Outlook assigned
Issuer: Portman Building Society
..Downgrades:
....Backed Preferred Stock Non-cumulative,
downgraded to Ba1(hyb) from Baa3(hyb)
..No Outlook assigned
Issuer: Nottingham Building Society
..Downgrades:
....Long-term Counterparty Risk Ratings,
downgraded to Baa1 from A3
....Long-term Bank Deposits,
downgraded to Baa2 from Baa1, outlook remains Negative
....Long-term Counterparty Risk Assessment,
downgraded to A3(cr) from A2(cr)
....Short-term Counterparty Risk Assessment,
downgraded to P-2(cr) from P-1(cr)
....Baseline Credit Assessment, downgraded
to baa2 from baa1
....Adjusted Baseline Credit Assessment,
downgraded to baa2 from baa1
..Affirmations:
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Short-term Bank Deposits,
affirmed P-2
..Outlook Action:
....Outlook remains Negative
Issuer: Principality Building Society
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed A2
....Short-term Counterparty Risk Ratings,
affirmed P-1
....Long-term Bank Deposits,
affirmed Baa2, outlook changed to Negative from Stable
....Short-term Bank Deposits,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed A2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-1(cr)
....Baseline Credit Assessment, affirmed
baa2
....Adjusted Baseline Credit Assessment,
affirmed baa2
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa2, outlook changed to Negative from Stable
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Baa2
....Subordinate Medium-Term Note Program,
affirmed (P)Baa3
....Preferred Stock Non-cumulative,
affirmed Ba2(hyb)
....Other Short Term, affirmed (P)P-2
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: Tesco Personal Finance Group plc
..Affirmations:
....Long-term Issuer Ratings,
affirmed Baa2, outlook changed to Stable from Positive
....Short-term Issuer Ratings,
affirmed P-2
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa2, outlook changed to Stable from Positive
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Baa2
..Outlook Action:
....Outlook changed to Stable from Positive
Issuer: Tesco Personal Finance plc
..Downgrades:
....Long-term Counterparty Risk Ratings,
downgraded to Baa1 from A3
....Long-term Counterparty Risk Assessment,
downgraded to A3(cr) from A2(cr)
....Short-term Counterparty Risk Assessment,
downgraded to P-2(cr) from P-1(cr)
..Affirmations:
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa1, outlook changed to Stable from Positive
....Short-term Bank Deposits,
affirmed P-2
....Long-term Issuer Rating,
affirmed Baa1, outlook changed to Stable from Positive
....Short-term Issuer Rating,
affirmed P-2
....Baseline Credit Assessment affirmed baa1
....Adjusted Baseline Credit Assessment,
affirmed baa1
..Outlook Action:
....Outlook changed to Stable from Positive
Issuer: TSB Banking Group plc
..Affirmations:
....Long-term Issuer Rating,
affirmed Baa3, outlook remains Negative
....Subordinate Regular Bond/Debenture,
affirmed Baa3
..Outlook Action:
....Outlook remains Negative
Issuer: TSB Bank plc
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa2, outlook remains Negative
....Short-term Bank Deposits,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed A3(cr)
....Short-term Counterparty Risk Assessment
, Affirmed P-2(cr)
....Long-term Issuer Rating,
affirmed Baa2, outlook remains Negative
....Baseline Credit Assessment, affirmed
baa2
....Adjusted Baseline Credit Assessment,
affirmed baa2
..Outlook Action:
....Outlook remains Negative
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Banks Methodology
published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1147865.
Alternatively, please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and
sensitivity analysis, see the sections Methodology Assumptions and
Sensitivity to Assumptions in the disclosure form. Moody's
Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.
For ratings issued on a program, series, category/class of
debt or security this announcement provides certain regulatory disclosures
in relation to each rating of a subsequently issued bond or note of the
same series, category/class of debt, security or pursuant
to a program for which the ratings are derived exclusively from existing
ratings in accordance with Moody's rating practices. For ratings
issued on a support provider, this announcement provides certain
regulatory disclosures in relation to the credit rating action on the
support provider and in relation to each particular credit rating action
for securities that derive their credit ratings from the support provider's
credit rating. For provisional ratings, this announcement
provides certain regulatory disclosures in relation to the provisional
rating assigned, and in relation to a definitive rating that may
be assigned subsequent to the final issuance of the debt, in each
case where the transaction structure and terms have not changed prior
to the assignment of the definitive rating in a manner that would have
affected the rating. For further information please see the ratings
tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The ratings have been disclosed to the rated entity or its designated
agent(s) and issued with no amendment resulting from that disclosure.
These ratings are solicited. Please refer to Moody's Policy
for Designating and Assigning Unsolicited Credit Ratings available on
its website www.moodys.com.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Moody's general principles for assessing environmental, social
and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.
At least one ESG consideration was material to the credit rating action(s)
announced and described above.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead rating analyst and the Moody's legal entity that has issued
the ratings.
REFERENCES/CITATIONS
[1] Bank of England 11-Mar-2020
[2] Bank of England 19-Mar-2020
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Edoardo Calandro
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Nicholas Hill
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
