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Moody's raises UK banking sector outlook

  • Credit ratings agency Moody's raised its outlook for the UK banking industry to stable from negative on Wednesday.

    In a statement, it said the move reflects the country's increasingly stable economic outlook, which comes in spite of low growth estimates.

    "Unemployment has not increased as much as in previous recessions, thereby contributing to a stabilization in banks' asset quality," the statement added.

    Moody’s also cited the continued improvement in the banks' capital as a result of new, stricter regulation and expects profitability to recover from current low levels.

    Tagged as: UK banking sector, UK banking sector outlook, Moody's, Moody's raised outlook