Moody's downgrades Britain's ailing Co-op
LONDON, June 18
LONDON, June 18 (Reuters) - Ratings agency Moody's on Tuesday said it had downgraded the senior debt and deposit ratings of the UK's Co-operative Bank, a day after the bank announced a 1.5 billion pound ($2.36 billion) recapitalisation plan.
The ratings of the Co-op's senior unsecured debt and deposits were both lowered to Caa1 from Ba3l the bank's financial strength rating was cut to E from E+. Moody's noted the 'material risk' that the bank would impose burden sharing on bondholders. Junior bondholders are already being asked to accept losses as part of the recapitalisation.