Fitch rates Metro Bank Holdings B

Fitch Ratings said it assigned Metro Bank Holdings plc a long-term issuer default rating of B and upgraded the long-term IDR of Metro Bank plc to B+ from B. The outlooks are stable.

“The upgrade reflects our view that Metro Bank's external senior creditors benefit from resolution debt buffers that will be raised by Metro Bank Holdings and downstreamed to Metro Bank, as the new holding company will be the primary issuer of resolution debt,” Fitch said in a statement.

The agency affirmed Metro Bank Holding's senior unsecured notes' (ISIN: XS2063492396) long-term rating at B. Metro Bank originally sold the notes as senior non-preferreds but they have now become senior unsecured obligations of Metro Bank Holdings, where they rank equally with the holding company's other senior liabilities. “The notes are therefore rated in line with Metro Bank Holdings' long-term IDR with a recovery rating of RR4, reflecting our expectations for average recoveries,” Fitch said.

All other ratings, including the rating of Metro Bank's tier 2 subordinated notes that will remain at the bank, are unchanged by this rating action, the agency said.

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