Moody's cuts RBS rating amid fears over restructuring

Credit ratings agency Moody's has cut the rating of the Royal Bank of Scotland, amid fears its restructuring will 'heavily depress' profits.

The ratings agency cut the national bank from A3 to Baa1 with a negative outlook after analysing the group's plans to dispose of certain parts of the business. Moody's said the bank's plans will leave it vulnerable to unexpected costs and will 'heavily depress profitability'. It added the bank has lower capital levels than expected. The downgrade by Moody's - which leaves the bank only three steps away from the agency's junk bond level - follows a disappointing update from the bank which has depressed shares. In its latest set of results the bank confirmed an £8.2bn loss for 2013, ...