Fitch lifts Clydesdale Bank, Virgin Money

Fitch Ratings said it upgraded Clydesdale Bank plc's and Virgin Money plc's long-term issuer default ratings, derivative counterparty ratings, as well as Virgin Money’s long-term senior debt ratings, to A- from BBB+.

The long-term issuer default rating of Clydesdale Bank and Virgin Money have been maintained on Rating Watch negative.

The upgrades follow an increase in the junior debt buffer at Clydesdale Bank, Fitch said.

The BBB+ viability ratings on the banks and the ratings of Clydesdale’s parent CYBG plc and Virgin Money Holdings (UK) plc, the intermediate holding company and direct parent of Virgin Money, are unaffected by this action.

The negative watch reflects the action taken on U.K. banks in March, reflecting the heightened uncertainty over the ultimate outcome of the U.K.'s exit from the European Union and the increased risk that a disruptive “no deal” Brexit could result in negative action on U.K. banks, most likely with negative outlooks being assigned, Fitch said.

The agency said it said it expects to resolve the negative watch on the U.K.'s scheduled exit from the European Union.

In the event a Brexit agreement is concluded, all else being equal, Fitch said it would resolve the negative watch and assign a stable outlook.

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