Moody’s cuts credit rating on Ulster Bank owner

THE credit ratings of two top British banks were cut yesterday due to the likelihood of less state support in a future crisis, as Britain sought to reassure investors its banks were well capitalised and able to cope with a European debt crisis.

Ratings agency Moody’s cut its rating on Ulster Bank owner Royal Bank of Scotland by two notches, downgraded Lloyds by one notch and cut its ratings on Santander UK, Co-Operative Bank, Nationwide Building Society and seven other smaller British building societies.

Banks had been on review for possible downgrades as part of a trend where state support for lenders is being reduced, and reforms proposed last month by Britain’s Independent Commission on Banking (ICB) were also expected to have a negative impact.