Fitch eyes Metro Bank negatively

Fitch Ratings said it placed Metro Bank Holdings plc's B long-term issuer default ratings and b viability rating on rating watch negative.

Fitch also placed operating subsidiary Metro Bank plc’s B+ long-term issuer default rating and b viability rating on rating watch negative.

Metro Bank Holdings’ senior unsecured bond and Metro Bank's senior debt program and tier 2 bond ratings have also been placed on rating watch negative.

“The RWN reflects our view that short-term risks to MBH's business model stabilisation, capital buffers and funding have increased,” the agency said in a news release.

“We expect the group's earnings prospects to come under pressure in the short term due to rising funding costs, resulting from higher competition for deposits and given likely more expensive access to wholesale funding.”

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