Co-op Bank CEO quits as Moody's downgrades debt rating

Ratings agency Moody's has downgraded the Co-operative Bank's debt rating - prompting the exit of its chief executive - after warning the group may need to raise £1bn.

Moody's decision was followed by the resignation of chief executive Barry Tootell this morning, and comes after the bank's deal to 630 Lloyds Banking Group branches collapsed last month. The Co-op Bank said it was "disappointed" with Moody's decision. The bank said it had a "strong funding profile" which is "significantly above the regulatory requirements." Banks are being forced to focus more on capital levels than ever before, and the expectation is the UK's new banking regulator, the Prudential Regulation Authority (PRA), will crack down on lenders and tell them to improve capit...