Moody’s Upgrades UK Banking Sector to Stable

Credit ratings agency Moody’s has upgraded its outlook for the UK banking industry to stable from negative.

It said the change reflected the country’s increasingly stable economic outlook, despite low growth prospects.

“Unemployment has not increased as much as in previous recessions, thereby contributing to a stabilisation in banks’ asset quality,” the statement said.

Moody’s expects profitability to recover from current low levels.

Other reasons given for the more positive outlook were the continued improvement in the banks’ capital as a result of new, stricter regulation.

“Overall, we believe that UK banks are sufficiently well capitalised to absorb expected losses from both our central and adverse stress scenarios,” Moody’s said.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza