Barclays 2015 Annual Report Download - page 201

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Credit ratings
In addition to monitoring and managing key metrics related to the financial strength of the Group, Barclays also subscribe to independent credit
rating agency reviews by Standard & Poor’s (S&P), Moody’s, Fitch and Rating and Investment Information (R&I). These ratings assess the
creditworthiness of the Group, its subsidiaries and branches and are based on reviews of a broad range of business and financial attributes including
risk management processes and procedures, capital strength, earnings, funding, liquidity, accounting and governance.
Credit ratingsa
As at 31 December 2015 Standard & Poor’s Moody’s Fitch
Barclays Bank PLC
Long-term A- (Stable) A2 (Stable) A (Stable)
Short-term A-2 P-1 F1
Stand-alone rating BBB+ BAA2 A
Barclays PLC
Long-term BBB (Stable) Baa3 (Stable) A (Stable)
Short-term A-2 P-3 F1
Barclays’ ratings carry a stable outlook with S&P, Moody’s and Fitch. Fitch affirmed the ratings in December 2015 as part of its periodic review, noting
the balance of Barclays’ stable PCB and strong Barclaycard businesses against the Investment Bank and Barclays Non-Core performance.
Credit rating agencies took industry wide actions in 2015 driven by evolving resolution frameworks. This involved the reassessment of the likelihood
of sovereign support resulting in downward pressure on senior credit ratings. They also updated their methodologies which provided some
mitigation to reflect the subordination of junior debt available to absorb losses ahead of senior bank creditors.
As a consequence, S&P downgraded Barclays PLC, the holding company, by two notches and Barclays Bank PLC, the operating company, by one
notch in H115. Moody’s downgraded Barclays PLC by three notches while affirming the rating of Barclays Bank PLC also in H115. There was no impact
on Barclays’ stand-alone credit ratings with all credit rating agencies.
During the year, Barclays also solicited issuer ratings from R&I for which they assigned ratings of A- for Barclays PLC and A for Barclays Bank PLC with
stable outlooks.
Contractual credit rating downgrade exposure (cumulative cash flow)
Cumulative cash outflow
One-notch
downgrade
£bn
Two-notch
downgrade
£bn
As at 31 December 2015
Securitisation derivatives 2 3
Contingent liabilities 1 1
Derivatives margining – 1
Liquidity facilities 1 1
Total contractual funding or margin requirements 4 6
As at 31 December 2014
Securitisation derivatives 5 6
Contingent liabilities 8 8
Derivatives margining – 1
Liquidity facilities 1 2
Total contractual funding or margin requirements 14 17
Note
a Refers to Standard & Poor’s Stand-Alone Credit Profile (SACP), Moody’s Bank Financial Strength Ratio (BFSR)/Baseline Credit Assessment (BCA) and Fitch Viability Rating (VR).
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