RBS welcomes credit rating upgrade by Moody’s
The Royal Bank of Scotland Group plc (“RBSG”) welcomes the decision by Moody’s Investors Services (“Moody’s”) to upgrade RBSG’s senior debt ratings and the deposit ratings of RBS plc and National Westminster Bank plc (“NatWest plc”).
16 June 2017
This is the result of an upgrade of the Baseline Credit Assessment to investment grade, baa3 from Ba1 for RBS plc and NatWest plc. The rating action reflects Moody’s recognition of the stronger standalone financial profile of the group and expectation for more stable performance in the medium term resulting from the group’s multi-year restructuring.
Moody’s have also affirmed the senior debt ratings at RBS plc and NatWest plc. This reflects Moody’s assessment that the volume of loss absorbing debt supporting senior debt under Moody’s Advanced Loss Given Failure analysis has reduced faster than their original estimates, resulting in a lower loss given-failure notching.
As a consequence of these actions:
- RBSG senior unsecured debt ratings and short-term ratings have been upgraded to Baa3 from Ba1 and to Prime-3 from Not Prime
- RBS plc and NatWest plc deposit and short-term deposit ratings have been upgraded to A2 from A3 and to Prime-1 from Prime-2
- All operating subsidiaries senior unsecured debt ratings remain unchanged
- All outlooks have changed to Stable from Positive
Ewen Stevenson, Chief Financial Officer, said “Becoming investment grade rated for our long term ratings across all three credit rating agencies has been an important goal for us. It is further external validation that our turnaround is now well progressed.”
RBS has today committed to helping 2.5 million people in the UK each year to improve their financial capability.
RBS has executed a £1.1bn securitisation deal with Macquarie Infrastructure Debt Investment Solutions (MIDIS), which will allow the bank to recycle capital and increase lending to the sustainable or renewable energy sectors.
RBS has today announced a new £1 billion in funding through NatWest to support female entrepreneurs in the UK to scale and grow – the largest intervention by a UK lender focused specifically on female-led businesses.