Lloyds Banking Group suffered another blow on Monday when it lost its long-held Aaa credit rating from Moody’s amid continued worries about accelerating losses from HBOS.
Lloyds Banking Group suffered another blow on Monday when it lost its long-held Aaa credit rating from Moody’s amid continued worries about accelerating losses from HBOS.
The cut in Moody’s long-term rating on the bank was accompanied by a bleak warning by the credit rating agency of the challenges facing Lloyds and the risk of more asset writedowns, putting extra pressure on its share price.
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The shares tumbled 21 per cent before rallying in volatile trading to close 8 per cent lower at 56.4p. The fall comes after a share price collapse on Friday when Lloyds warned that HBOS, which it took over on January 19, had suffered a £10bn loss in 2008.
Gordon Brown on Monday sought to damp speculation that Lloyds was set to come under majority public ownership. The prime minister’s spokesman stated: “While nothing is ruled out, no active consideration is being given to the nationalisation of Lloyds.”
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