Moody’s Give U.K. Banks a Clean Bill of Health

  • Moody’s says costs of preparing for EU exit to be ‘moderate’
  • Lloyds placed on review for upgrade on improved asset risk

Onlookers watch the evening sun set on the horizon beyond skyscrapers including the Leadenhall building, also known as the 'Cheesegrater.'

Photographer: Simon Dawson/Bloomberg
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U.K. banks are better placed to withstand a slowing economy as the country exits the European Union, Moody’s Investors Service said.

Moody’s raised the outlook on the nation’s banks to stable from negative, according to a report Wednesday. Strong capital positions, loan quality and funding should underpin profitability even as the economy slows, while additional costs associated with preparing for Brexit will be “moderate,” it said.