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| Co-op Bank debt rating downgraded by Moody's | Co-op Bank debt rating downgraded by Moody's |
| (35 minutes later) | |
| Ratings agency Moody's has downgraded the Co-operative Bank's debt rating, citing fears that it is not well enough protected against potential losses. | Ratings agency Moody's has downgraded the Co-operative Bank's debt rating, citing fears that it is not well enough protected against potential losses. |
| The agency warned that the bank may need "external support" if it could not strengthen its balance sheet. | |
| The Co-op said it was "disappointed" with Moody's decision. | The Co-op said it was "disappointed" with Moody's decision. |
| The news preceded the resignation of chief executive, Barry Tootell, following the bank's failure to buy 630 branches from Lloyds Banking Group. | |
| Mr Tootell will be replaced temporarily by Rod Bulmer, the bank said. | Mr Tootell will be replaced temporarily by Rod Bulmer, the bank said. |
| 'Clear plan' | |
| Responding to the Moody's downgrade, the Co-op said it had a "strong funding profile" which was "significantly above the regulatory requirements." | |
| But in a statement, the bank admitted there was a "need to strengthen our capital position in light of the broader economic downturn and the pending introduction of enhanced regulatory requirements". | |
| "We have a clear plan to drive this forward throughout the coming months", it added. | |
| These plans include selling off its life and general insurance businesses, and simplifying its operations. | |
| In March, the Co-op Bank reported annual losses of £674m. |