Thursday, July 05, 2012
Barclays credit rating outlook lowered by Moody's
Rating agency Moody's has lowered its outlook on Barclays from stable to negative following the resignations of three senior executives this week amid the inter-bank rate-rigging scandal.
The agency said shareholder and political pressure was creating uncertainty about the bank's future.
The move comes a day after ex-Barclays chief executive Bob Diamond told MPs the rate fixing was "reprehensible".
One MP, however, called some of Mr Diamond's evidence "implausible".
MPs will vote later on whether to have a judge-led inquiry over the scandal, favoured by the opposition, or a parliamentary one, favoured by ministers.
Moody's said pressure on the bank could force it to move away from investment banking.
"Although this could have potentially positive implications over the longer term, the uncertainty surrounding such a change in direction is credit negative in the short term," the agency said.
It added that Barclays may find it difficult to replace Mr Diamond, chief operating officer Jerry del Missier, and chairman Marcus Agius, all of whom resigned this week. Mr Agius is staying on at the bank to oversee finding a replacement for Mr Diamond, but will step down once someone has been found.
DATED: 05.07.12
FEED: BBC
