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Barclays outlook rating lowered to negative

Moody's puts Barclays on negative watch.

Moody's, the credit ratings agency, have lowered their outlook on Barclays from stable to negative following the resignation of Barclays chief executive Bob Diamond and the Libor manipulation scandal.

The change reflects concerns for bondholders concerning the direction of the bank in this period of uncertainty. Moody's have stated that recent events "could lead to broader pressure on the bank to shift its business model away from investment banking and reform perceived failures in its business culture".

Moody's have also expressed concern about the bank's ability to find a suitable replacement for Bob Diamond, who resigned on Tuesday. The resignations that followed the scandal have put pressure on the bank to find quick replacements for senior figures.

S&P have also joined Moody's in their concerns over the bank's stability, blaming "weak compliance" and the "current management flux" for the drop in outlook rating.