S&P keeps ratings stable for bailed-out British banks

26th May 2010, Comments 0 comments

Standard & Poor's on Wednesday affirmed its credit ratings for Lloyds Banking Group and Royal Bank of Scotland -- two British financial giants that were bailed out during the economic crisis.

The ratings agency retained its A+/ A-1 counterparty credit ratings on LBG and RBS, saying that the two groups "have in our view laid the foundations to improve their performance and further strengthen their balance sheets."

It said in a statement that the outlook on the ratings was stable and that the rankings could be revised up "over the two-year outlook" but it also cautioned that both companies "have much more to achieve."

S&P credit analyst Nigel Greenwood said: "The affirmations reflect our view of the early progress made... regarding their respective turnaround plans."

Royal Bank of Scotland received tens of billions of pounds in Europe's biggest ever corporate bailout from the British government, which now owns an 83-percent stake in the company. LBG is 41.3-percent state owned.

© 2010 AFP

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