June 18, 2013 / 9:55 AM / 4 years ago

Moody's downgrades Britain's ailing Co-op

LONDON (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.

A woman passes a cash machine at a Co-Operative Bank branch in central London June 17, 2013. REUTERS/Luke MacGregor

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.

Editing by Kirstin Ridley; Reporting By Laura Noonan

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