Fitch puts Metro Bank on evolving watch

Fitch Ratings said it placed Metro Bank plc's B+ long-term issuer default rating of B+ and Metro Bank Holdings plc's (MBH) B long-term IDR on rating watch evolving from rating watch negative following the announcement of measures to strengthen the bank's capitalization.

“The RWEs on Metro Bank's and MBH's long-term IDRs reflect Fitch's view that the measures announced to strengthen Metro Bank's capitalization through the injection of fresh capital, the partial write-down of tier 2 debt and the extension of the maturity of MREL-eligible holding company (holdco; MBH) debt could result in an upgrade of the bank once the transaction is completed, which is expected in 4Q23,” the agency said in a press release.

The RWE, which should be resolved when the capitalization is completed, also reflects the risk to the rating if the transaction does not proceed, which, in Fitch's opinion, could lead to a regulatory intervention, the agency said.

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