Building Societies credit ratings downgraded
Moodys, a leading ratings agency, has downgraded nine buildings amid fears of rising bad debts.The downgrades are based on a scenario of a 40% peak-to trough fall in house prices and could make it difficult for the building societies to refinance debts as a result.
The Building Societies Association said the sector had "weathered the storm well" Adding that:"We are fairly disappointed by what Moody's have done and very surprised by it, not least because it is based on a very pessimistic view of future house prices."
The nine societies downgraded include the UK's largest Nationwide, Chelsea, Coventry, Newcastle, Norwich & Peterborough, Principality, Skipton, West Bromwich and Yorkshire building societies.
1 comment:
Moodys actions and comments are at the route as to why the housing market's recovery is so slow. To lump all building societies into one and give them all a bad name is wrong. In Banbury, Oxfordshire the market is moving and first time buyers are viewing property again, but building societies need to be encourage to attract more first time buyers with more decisive advertising
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