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Lloyds Banking Credit Outlook Cut to Negative From Stable by S&P

Lloyds Banking Group Plc has had its credit outlook cut to negative from stable by Standard & Poor’s.

S&P said its decision related to the 5.3 billion pounds the bank has set aside to compensate customers wrongly sold loan insurance, the firm said in a statement today.

“It appears likely that Lloyds will report a statutory pretax loss in 2012 and we now assume only a modest pretax profit in 2013,” S&P said.

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