HML is warning UK financial institutions currently rated Baa3 by Moody’s that they should engage with a standby servicer.

The servicer says the rating agency is preparing to reassess its ratings, which could lead to possible downgrades

Moody’s says the review has been prompted because “the UK authorities have made it clear they do not view the UK banking sector as a ‘zero failure’ system”” forcing it to review systemic support assumptions currently embedded in its senior debt ratings for UK financial institutions