Wednesday, April 15, 2009
Ratings actions based on stress-testing a peak to trough decline in house prices of 40%
Ratings agency Moody's has slashed its credit ratings on a number of building societies after warning of further losses to come as people struggle to pay their mortgages. Moody's has downgraded a total of 16 building societies, including groups such as Abbey National, Alliance & Leicester and Nationwide, in anticipation of further pain to come in the UK housing market as a result of the global economic crisis. It has cut both its Bank Financial Strength Rating's (BFSR) on all the firms, as well as reducing some of its senior debt and deposit ratings.