More grief for Bradford & Bingley. From the FT’s banking team, Peter Thal Larsen and Jane Croft:
Bradford & Bingley is braced for a further setback after Moody’s, the rating agency, indicated it was preparing to cut the ailing mortgage lender’s credit rating.
Moody’s, which has been reviewing B&B’s credit ratings ever since it issued a profit warning last month, has decided to lower the bank’s main ratings by a single notch, people familiar with the matter said. An announcement could be made later on Thursday.
The downgrade, which comes just days before shareholders are due to vote on B&B’s £400m share issue, is significant because it gives TPG Capital, the private equity firm that is backing the capital increase, the right to walk away from the deal…
Related links:
B&B braces for credit downgrade - FT.com
