Brokerage says Barclays to take 3 billion pound in writedowns

(Reuters) - Barclays (BARC.L) will likely take three billion pounds more in writedowns in the first half of this year, as well as raise three 3 billion pounds in equity and pay an interim scrip dividend, said Dresdner Kleinwort, which downgraded the stock to "reduce" from "hold."

"Given the current environment and the group's growth aspirations, we expect management to boost capital ratios," the brokerage said.

On a "do nothing" basis, the brokerage expects Britain's third largest bank's equity Tier 1 ratio to fall to 4.7 percent in the first half of 2008.

"If the company does not raise capital then we think that the perception will be that it has written down only what it can afford rather than what is necessary," the brokerage said.

Using Royal Bank of Scotland's (RBS.L) markdowns, the brokerage estimates that Barclays will take another 9 billion of writedowns beyond the 2.3 billion it took in 2007.

Dresdner, however, forecast a lower level of 3 billion pounds, driven by Barclays' better quality assets and as RBS has "...probably tried to be as aggressive as possible."

Barclays, which will issue a full first-quarter trading update on May 15, is facing speculation that it could launch a rights issue to rebuild its capital and also scrutiny from investors over its exposure to losses from the credit crunch.

The bank had refused to directly say at a shareholder meeting last month if it planned a rights issue, but said it had options to rebuild capital -- retaining earnings, managing its balance sheet and raising new equity.

Last month, Britian's biggest mortgage lender HBOS HBOS.L made a 4 billion pound cash call and said it would cut its dividend, just days after its rival RBS offered investors a deeply discounted rights issue.