Standard & Poor's downgrades outlook on Lloyds

  • Associated Press
  • November 8, 2012 - 9:52 AM

LONDON - The rating agency Standard & Poor's has downgraded its outlook on Lloyds Banking Group from stable to negative.

The agency said Thursday the revision was due to Lloyds' announcement that it was setting aside another 1 billion pounds ($1.6 billion) to compensate buyers of payment protection insurance. That raised Lloyds' total provision to 5.3 billion pounds.

The negative outlook means S&P is less likely to increase its assessment of Lloyds' capital and earnings over the coming year.

S&P reaffirmed, however, its A/A-1 credit rating for the bank.

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