International credit rating agency, Standard & Poor\u2019s (S&P), has downgraded Britain\u2019s banking sector.<\/p>\n
The agency is downgrading Britain\u2019s banking industry by one tier to its Group 3 out of 10. Banks in Canada, France and Germany are in the first and second groups.<\/p>\n
It said: \u201cWe no longer classify the United Kingdom (AAA\/Negative\/A-1+) among the most stable and low-risk banking systems globally.\u201d<\/p>\n
Following the announcement, the pound fell sharply against the US dollar as the agency explained its decision to downgrade the sector after putting Britain on \u201cnegative watch\u201d last May.<\/p>\n
S&P said the country\u2019s \u201cweak economic environment\u201d and the banks\u2019 \u201chigh\u201d dependence on Government support had led it to its decision.<\/p>\n
Nigel Greenwood, S&P credit analyst, said he believes that \u201cthe weak UK economy will continue to hinder the credit profile of the UK banking industry.<\/p>\n
\u201cThe near collapse of a number of financial institutions damaged the reputation of the UK banking system. This led to wide-ranging state support, including significant government stakes in two of the four major banking groups. We note that there is a wide dispersion in credit quality among UK banks and that some banks did not require direct government support,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":"
International credit rating agency, Standard & Poor\u2019s (S&P), has downgraded Britain\u2019s banking sector. The agency is downgrading Britain\u2019s banking industry<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[2],"tags":[],"class_list":["post-303","post","type-post","status-publish","format-standard","hentry","category-banking"],"_links":{"self":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=303"}],"version-history":[{"count":0,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/303\/revisions"}],"wp:attachment":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}