Bloomberg News

Lloyds’s Financial Strength Rating Put on Review by Moody’s

November 09, 2011

Nov. 9 (Bloomberg) -- Lloyds TSB Bank Plc, part of Lloyds Banking Group Plc, had its bank financial strength rating put on review for a downgrade by Moody’s Investors Service after Chief Executive Officer Antonio Horta-Osorio took a leave of absence.

The bank’s C- financial strength rating and the A1 senior unsecured debt and deposit rating of Lloyds TSB were put on review, the ratings company said in a statement today. Lloyds Banking Group’s A2 senior debt rating was also put on review.

Horta-Osorio, 47, last week went on medical leave and has been replaced temporarily by Finance Director Tim Tookey. He is expected to return before the end of the year, Tookey told journalists on a call yesterday.

“The review has been prompted by the significant upheaval within Lloyds’ senior management,” Moody’s analysts led by Elisabeth Rudman said in the statement.

Lloyds and Royal Bank of Scotland Group Plc, Britain’s two biggest government-backed lenders, had their credit ratings cut by Fitch Ratings on Oct. 13, which said the U.K. is less likely to provide support in future.

--Editor: Edward Evans, Francis Harris.

To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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