B&B downgraded

Source: Exec Digital UK

Date :24/09/2008 09:11:49

Bradford & Bingley shares have taken a battering as the bank is downgraded to BBB-, representing the lowest of 10 investment-grade rankings.

News that the buy-to-let mortgage lender had freed itself from having to buy £1 billion of unwanted mortgage assets next year came too late to prevent the shares sliding 12 percent to 24 pence.

Fitch Ratings downgraded the bank to a level only one place above the classification of 'junk'.

Reports that the FSA was seeking a rescue bidder for B&B has apparently contributed to Fitch’s decision. The uncertainty could damage confidence and lead to savers withdrawing money, as they did over the summer when its attempts to raise fresh capital were derailed repeatedly.