The Co-operative Bank reaches key milestone with Baa3 investment grade rating by Moody's

Credit ratings agency Moody's has today upgraded The Co-operative Bank’s long-term deposit rating to Baa3, moving the Bank to investment grade and placing the Bank on positive outlook.

Credit ratings are widely used by corporate and wholesale debt investors. Reaching an investment grade threshold with a widely used agency means The Co-operative Bank has improved access to these markets going forward.

Moody's said the upgrade of The Co-operative Bank's long-term deposit ratings and the upgrade of its BCA reflect the Bank's improved profitability supported by the higher interest rate environment and further progress towards a sustainable capital generative business model. The rating action also reflects the Bank’s progress in simplifying and upgrading its technology infrastructure which culminated in the transitioning of majority of its mortgage operations onto one technology platform in February 2024, following the transfer of most of its savings products in 2023.

In addition, Moody's placed The Co-operative Bank on positive outlook, reflecting Moody's expectations that the Bank’s financial performance and risk profile supported by a completion of its IT transformation initiatives over the next 12-18 months could be commensurate with a higher rating level.

Nick Slape, Chief Executive Officer at The Co-operative Bank, said:

"Securing an investment grade long-term deposit rating is a significant milestone for The Co-operative Bank and highlights the strides we have made in returning the Bank to sustainable profitability, our strong capital position and the significant progress we have made to date in delivering our ambitious transformation programme."

To read the update in full, please visit: Moody's upgrades The Co-operative Bank's long-term deposit ratings to Baa3, positive outlook