UK

Dexia Crédit Local today (Tuesday) found its second visit to the government-guaranteed market easier than its first and is set to price its new issue this afternoon. Meanwhile Lloyds TSB found demand from unexpected areas in sterling and OeVAG wrapped up its four year euro.

Moody’s yesterday (Monday) downgraded HSBC Bank plc’s debt and deposit ratings from Aa1 to Aa2 and its financial strength rating from B to C+ with negative outlooks.

Dexia Crédit Local is hoping to win over investors to its three-way guaranteed paper when it comes to market tomorrow (Tuesday), while OeVAG has today (Monday) been negotiating the differences in opinion on Austrian spreads.

Standard & Poor’s downgraded Lloyds TSB and Bank of Scotland’s long term counterparty ratings from AA- to A+ on Friday. Lloyds Banking Group was lowed from A+ to A. All have a stable outlook.

IKB Deutsche Industriebank issued a Eu2bn three year government-guaranteed bond at 45bp over mid-swaps today (Thursday). The pricing took into account IKB's troubles and the anomalies of the secondary market.

The pace of government-guaranteed issuance picked up today (Wednesday), with an Austrian, a UK and possibly a German name joining in. Banks are said to be keen to complete deals ahead of the European Central Bank meeting tomorrow (Thursday).

Standard & Poor's yesterday (Thursday) revised its outlook on Clydesdale Bank from stable to negative.

Bankinter yesterday (Wednesday) printed its debut government guaranteed deal, soaking up investor demand left unsatisfied by preceding Spanish transactions in the guaranteed market. Its oversubscribed book bodes well for Banco Pastor, which today (Thursday) announced that it will follow with a government-backed benchmark.

Fitch does not expect the Banking Act 2009 to affect the rating of UK structured finance and covered bond programmes, because of the commitment of the UK authorities to ensure that the markets are not disrupted.

Moody’s today (Monday) downgraded Lloyds TSB and Bank of Scotland, with Lloyds TSB losing its Aaa rating.

CIF Euromortgage has added Eu70m to its 4% October 2016 issue, continuing France’s domination of jumbo supply through taps and new deals in January into February. Meanwhile the government-guaranteed sector in euros was subdued.

Moody’s yesterday (Sunday) announced a two notch downgrade of Barclays Bank from Aa1 to Aa3, with a stable outlook.