Moody's downgrades Close Brothers

Moody's has downgraded the credit rating of financial services group Close Brothers, pointing to the rapid growth of its loan book and its exposure to the flagging UK economy.

Close has seen its bank deposit rating downgraded from A2/P-1 to A3/P-2, while its standalone credit profile has been lowered from a2 to a3. Its senior unsecured debt and long-term issuer ratings have been downgraded to Baa1 from A3, and the ratings agency has placed the firm on a negative outlook. “The downgrade primarily reflects the high loan growth that the bank has recorded in recent years,” Moody’s said in a statement. “The downgrade also reflects the bank's exposure to any further deterioration in the UK economy, especially given its focus on lending to SMEs. "Moody's gen...