Fitch Ratings Takes Rating Action on 18 UK Banking Groups Due to the Coronavirus Outbreak – Reuters

Reuters reports that the Fitch Ratings has taken rating action on 18 UK banking groups to reflect the downside risks to their credit profiles resulting from the economic and financial market implications of the coronavirus outbreak.

"The ultimate implications of the pandemic on banks' credit profiles are unclear, but Fitch considers the risks to be skewed to the downside, which has driven these rating actions."

The main actions are as follows:

Long-Term Issuer Default Ratings (IDRs) downgraded: Close Brothers Group PLC to 'A-' from 'A'; The Co-Operative Bank p.l.c. to 'B-' from 'B'; Metro Bank Plc from 'BB' to 'BB-'. These ratings have been downgraded as we believe the the economic fallout from the coronavirus crisis results in heightened risks to these banks' credit profiles. The Outlooks are Negative on Metro Bank and Close Brothers. The Co-Operative Bank's ratings are on Rating Watch Negative (RWN).
Long-Term IDRs placed on RWN: Barclays plc, 'A'; Investec Bank plc, 'BBB+'; Tesco Personal Finance Group PLC, 'BBB'; Virgin Money UK PLC, 'BBB+' .
Long-Term IDRs affirmed; Outlooks revised to Negative from Stable: Coventry Building Society at 'A-'; HSBC Holdings plc at 'A+'; Lloyds Banking Group plc at 'A+'; Leeds Building Society at 'A-';Nationwide Building Society at 'A'; Principality Building Society at 'BBB+'; The Royal Bank of Scotland Group plc at 'A'; Santander UK Group Holdings plc at 'A'; Skipton Building Society at 'A-'; Yorkshire Building Society at 'A-'. Paragon Banking Group PLC's Long-Term IDR is affirmed at 'BBB' and maintained on Negative Outlook.

Market implications

• GBP/USD battles 1.24 as UK coronavirus death toll jumps by 31%

That should be a relief for the more pessimistic. Banks are in a better place than in 2008. However, there is an underbelly of global corporate debt to remain mindful of.