Lloyds Under Fire as CEO Takes Leave

Moody’s has today announced a raft of ratings reviews across Lloyds, HBOS and the Bank of Scotland following news that Lloyds’ CEO, António Horta-Osório, has been taken ill. The news comes hot on the heels of Moody’s review of systemic support assumptions, from the UK government for UK banking, which saw the downgrade of senior debt and deposit ratings of 12 UK financial institutions, including Lloyds.

A spokesperson from Lloyds Banking Group said: “We will be working with Moody’s to assure them of the efficacy of our interim management arrangements and our ability to deliver on our strategic aims.”

While Lloyds’ short-term P-1 rating has been affirmed, the following ratings have all been placed under review for possible downgrade:

Lloyds TSB Bank:
A1 senior debt and deposit rating
C- Bank Financial Strength Rating (mapping to Baa1 on the long-term
scale)
Baa2 senior subordinated debt

Lloyds Banking Group:
A2 senior debt rating

Bank of Scotland:
A1 senior debt and deposit rating
Baa2 senior subordinated rating

HBOS:
A2 senior debt rating
Baa3 senior subordinated debt

Lloyds TSB Offshore:
A2 deposit rating