Surprise TPI upgrade saves Co-op covered from junk

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Surprise TPI upgrade saves Co-op covered from junk

Moody’s raised the Timely Payment Indicator of Co-Operative Bank’s Moorland covered bond from Probable to Probable-High on Thursday even as the bank issuer rating was cut to Caa1 from Ba3. The counterintuitive move ensures the covered bond stays in investment grade territory. Though welcome, it has led some participants to conclude that ratings are becoming harder to fathom.

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