Moody's downgrades NAB's UK bank rating

SYDNEY (AAP) - 28 SEPT - Ratings agency Moody's Investors Service has downgraded the long-term bank deposit and senior debt rating of National Australia Bank's UK-based Clydesdale Bank to A2 from A1.
Moody's said the downgrade followed public comments from NAB's senior management that suggested it was open to a sale of the bank in the future, although it was likely to remain a supportive parent of Clydesdale while it was still the owner.
"In Moody's view, the discussion about a potential sale of Clydesdale in the future raises questions about the long-term strategic commitment of NAB to the UK market," Moody's said in a statement late on Wednesday.
The A2 rating incorporates one notch of UK systemic support, Moody's said.
Clydesdale's long-term bank deposit and senior debt rating remains on review for possible further downgrade, in line with Moody's re-assessment of the systemic support assumptions of several UK banks and building societies.
"As a result of the reduction in parental support and the ongoing review of systemic support, the Prime-1 short-term debt and deposit ratings of Clydesdale Bank are also placed on review for possible downgrade," Moody's said.
The review would be concluded shortly, it said.