Moody's Investors Service upgraded Standard Chartered Bank's long-term deposit and senior unsecured debt ratings from Aa2 to A1 in May 2015, states the service's official website. In the same month, Fitch reassessed its own ratings of Standard Chartered Bank, downgrading the bank's support rating from five to one and its support rating floor from A- to "no floor." Moody's also downgraded several aspects of the bank's operation, including its junior subordinated debt rating, from A3 to Baa1, and cumulative preference share rating, from A3 to Baa1.
Moody's also downgraded Standard Chartered Bank's baseline credit assessment. Moody's concluded its review by describing the bank's overall financial profile as remaining strong but weakened. In particular, the quality of Standard Chartered Bank's assets and its profitability were weaker than they were two years prior. However, the bank's geographical diversification, liquidity profile and capital position were strengthening, notes Moody's. Its increased geographical diversification, in particular, reduced the concentration of risk and volatility of earnings.
Among the reasons for Fitch's unfavorable rating of Standard Chartered Bank were developments at the level of the European Union, where the bank is incorporated. Specifically, certain changes in legislative and regulatory policies have decreased the likelihood of sovereign support for senior creditors.