Moody’s put Royal Bank of Scotland Group’s long-term ratings and Royal Bank of Scotland Plc’s A3 long-term debt and deposit ratings on review, according to a statement Friday.
Bloomberg News reports that Chancellor of the Exchequer George Osborne has hired Rothschild to assess the case for breaking up RBS and hiving off its toxic assets into a so-called bad bank.
The Treasury is struggling to cut its 81 percent stake in the lender, with the shares trading for less than the price the government paid for them when it provided the costliest bank bailout in history. Stephen Hester quit last month as RBS’s CEO.
'It’s not surprising given the uncertainty surrounding the future of RBS', said Simon Maughan, a banking analyst at Olivetree Securities Ltd. in London. 'There are big issues about who is going to run RBS, whether it’s going to be allowed to have an investment bank, and what impact that is going to have on profitability'.
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