Rating agency downgrade, 7 October 2011
Rating agency downgrade
The decision by Moody's to downgrade the credit rating of a number of banks and building societies wasinevitable whenthe Government made it clear earlier this year that deposit-takers should not be seen simply as 'too big to fail'. So this movereflects a catching up by the agency rather than a change in the creditworthiness of the institutions. That said, it was not too long ago that Dexia from Belgium passed its stress testing with flying colours, yetit is now in the process of seeking a further bail-out.
"Investors should not be worried- and as long as they avoid holding more than £85,000 in any bank or building society, their deposits are safe."