Moody’s eyes Virgin Money UK for upgrade

Moody’s Ratings said it placed its ratings for Virgin Money UK plc, including its Baa1 long-term senior unsecured ratings, and its subsidiary Clydesdale Bank plc on review for upgrade.

Nationwide Building Society, rated A1 by Moody’s, agreed to buy Virgin Money UK for £2.9 billion all-cash transaction.

“The review for upgrade reflects increased likelihood of the deal being executed due to the agreement reached between the two parties with an expected execution by year-end 2024 as compared to the preliminary announcement upon which the previously positive outlook was based,” Moody’s said in a press release.

The agency said the review will consider “the regulatory resolution framework the bank, as part of the consolidated group, will be subject to and the accompanying minimum requirements for own funds and eligible liabilities (MREL) capital requirements as well as the position of the existing debt issued out of the holding company Virgin Money UK, within the consolidated capital structure of the group post completion of the acquisition.”

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