Moody’s changes outlook for RBS from stable to positive


Moody’s changes outlook for RBS from stable to positive

The ratings agency Moody’s has changed its outlook for both The Royal Bank of Scotland plc (RBS) and The Royal Bank of Scotland Group plc (RBSG) from stable to positive. Moody’s define a rating outlook as an opinion regarding the likely rating direction over the next 12-18 months.

Our news

15 December 2015

Moody’s has affirmed its supported long-term deposit and senior unsecured debt ratings for RBS as A3, and the long term senior unsecured debt ratings of the holding company, RBSG, as Ba1.
It has also affirmed RBS’s short-term rating of Prime-2 and RBSG’s short-term rating of Non-Prime.

The agency said that its positive outlook reflects the substantial progress that the bank has made in our restructuring plan, as well as Moody’s expectation that RBS credit and risk profile will continue to improve over the next 12-18 months.

Moody’s said: "RBS has made substantial progress in the implementation of its multi-year restructuring plan, which has resulted in stronger regulatory capitalisation, lower asset risk and improved funding and liquidity. However, there are still significant downside risks in the short- to medium-term that could arise either from the implementation of the plan or from other sources, such as further litigation or conduct costs, which together with large budgeted restructuring charges, will continue to depress profits.“

The agency noted that RBS has successfully completed some of our planned initiatives, including the full disposal of Citizens and accelerated wind-down of RBS Capital Resolution (RCR), and is still in the process of consolidating the restructure of our core operations, a very large downsizing of our CIB business, and a substantial reduction of cost base.

Posted In

Our news

Tagged

2015

Latest news

Royal Bank of Scotland hosts ‘Easy Wins Live’ event

The event explored today’s ‘always on’ world and the pressure Scots face as they struggle to balance life inside and outside of work.

To win the fight against fraud and scams, it is vital to educate young people.

Primary school children in Currie, Edinburgh put on their detective hats last week to learn more about fraud and scams thanks to the Royal Bank of Scotland MoneySense programme. Les Matheson, CEO of Personal Banking, tells us why it’s so important to financially educate young people.

New NatWest debit cards now accessible for all customers

New card features are being rolled out from today with all cards having a notch and raised dots.

Set Tab for lightbox