Fitch Affirms BoE AA Rating, Outlook Stable
Fitch Ratings has affirmed the Bank of England’s (BoE) Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘AA-‘ with a Stable Outlook.
The BoE’s LTFC IDR is directly aligned with the UK’s sovereign ratings, according to Fitch. The BoE is the UK’s monetary arm and, as such, its credit profile aligns with that of the sovereign government, ratings analysts said.
Fitch said it currently only rates the BoE’s three-year maturity US dollar bonds. The rating does not apply to typical central-bank liabilities of the BoE, such as banknotes or commercial bank reserves, which are monetary liabilities rather than rateable debt.
The BoE’s rating reflects the bank’s central role in the UK and international financial system. The rating is underpinned by support from the UK sovereign.
The near-certainty of sovereign support for the BoE derives from its national strategic importance. The BoE’s rating is sensitive to changes in the UK’s sovereign rating. #Fitch Affirms BoE AA Rating, Outlook Stable#
CBN Issues N3.5trn OMO Bills to Banks, Foreign Investors
The post Fitch Affirms BoE AA Rating, Outlook Stable appeared first on MarketForces Africa.