Northern Rock issuer default rating cut to 'A-' - Fitch

MUMBAI (Thomson Financial) - Fitch Ratings said it downgraded UK-based Northern Rock's long-term issuer default rating to 'A-' from 'A' based on the increased negative sentiment from wholesale market participants and retail depositors that has severely strained the bank's funding options.

Fitch believes when markets normalise, the impact on Northern Rock's franchise and business model from a funding perspective will likely be greater than originally anticipated, despite the bank's sound capitalisation and asset quality.

The outlook on the ratings is stable. [e-mail] ssa COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.