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Article: UK: MOODYS: UK TREASURY ASSET SCHEME ACHIEVES MODEST RISK REDUCTION FOR GOVERNMENT.
- Article from:
- IPR Strategic Business Information Database
- Article date:
- November 5, 2009
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The UK Treasury's recent agreements with the country's two largest nationalised banking groups -- Royal Bank of Scotland (RBS) and Lloyds -- with respect to their participation in the government's Asset Protection Scheme is neutral for the UK's creditworthiness, says Moody's Investors Service in a new report, entitled "UK sovereign credit unaffected by HM Treasury Agreements with RBS and Lloyds." The Asset Protection Scheme is an insurance scheme, whereby the government offers to guarantee certain assets held by the banks in return for a fee. It was initiated in January 2009 as part of the array of government interventions designed to restore confidence in the ...