admin“The outlook revision reflects the resignation of Barclays CEO Bob Diamond on July 3, 2012,” it said in a statement.
The group’s chairman, Marcus Agius, and chief operating officer Jerry del Missier have also resigned over the scandal.
Putting the rating outlook on negative usually means it is at risk of being downgraded in the future, a move which can increase financing costs for the company affected.
“The negative outlook reflects our view of the current management flux and near-term strategic uncertainty arising from the revelation of what we perceive to be certain poor business practices and weak compliance in relation to the past setting of interbank offered rates,” S&P said.
Earlier yesterday, agency Moody’s downgraded the outlook on Barclays’ financial strength rating to “negative” from “stable” for the same reasons.
The bank was last week fined US$452 million by British and US regulators for the attempted rigging of the Libor and Euribor interest rates.
Libor (London Interbank Offered Rate) is a flagship London instrument used as an interest benchmark throughout the world, while Euribor is the eurozone equivalent.
The rates play a key role in global markets, affecting what banks, businesses and individuals pay to borrow money. — AFP.
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