S&P announcement on Clydesdale Bank

01/12/2011

Please find attached an announcement made by S&P Ratings today.

In response to the announcement Cameron Clyne, Group CEO of National Australia Bank said:

“The change in Clydesdale Bank's rating is largely attributable to a change in how S&P evaluates parent company support. While S&P has changed its assumptions, in substance, the nature of NAB’s support for Clydesdale Bank is unchanged.

"Clydesdale Bank is a profitable and well-run bank. As was stated in the 2011 Annual Review, Clydesdale Bank will maintain a careful and prudent approach to sustaining the strength of its balance sheet. Clydesdale’s focus remains on long-term security and stability as a priority over short-term profits,” Mr Clyne said.

David Thorburn, UK CEO commented:

“In common with other UK banks we have been reviewed by S&P under their new ratings criteria. Our movement is largely attributable to the way parent company support is evaluated as part of the new methodology. This is disappointing as the nature of NAB’s support for Clydesdale remains unchanged. It is important to recognise that we are a profitable, conservative bank with sound capital and funding and our parent, NAB, is a highly rated bank by global standards.”

The statement made on Thursday, 1 December is available at www.nabgroup.com.

Download the S&P announcement (PDF, opens in new window)