Fitch: Barclays outlook negative

Fitch Ratings said it affirmed the AA long-term issuer default ratings of Barclays plc and Barclays Bank plc revised the outlook to negative from stable.

The revision follows Barclays' plans to acquire the Lehman Brothers North American investment banking and capital markets businesses, according to the agency.

Fitch said it understands Barclays Capital's motivation to seize the opportunity created by problems at other investment banks and to look to expand its product and geographical franchise.

The negative outlook reflects Fitch's opinion that the expansion of the group's investment banking operations via the Lehman acquisition may increase the earnings volatility and overall risk profile of the enlarged group, the agency said.

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