Moody’s Downgrades Barclays PLC

The Moody’s rating agency downgraded the long-term debt of Barclays PLC. It also lowered the financial strength of the bank from a B to a C. The downgrades are said to reflect Moody’s expectation of potentially significant further losses at Barclays as a result of writedowns on credit market exposure as well as increase in impairments in the UK, whichcould weaken profitability and capital ratios. As a result of this first major news release of the week the Pound has sold off across the board with GBP/JPY retesting the 129 handle.