(Alliance News) - Metro Bank PLC on Monday noted that Fitch Ratings has lowered its credit rating but said it is confident of meeting minimum funding requirements.
Fitch revised Metro Bank's long-term issuer default rating to BB from BB+.
The struggling UK lender noted its CET1 ratio at June 30 "greatly exceeded" the minimum regulatory requirement, standing at 16.1% compared to the requirement of 10.6%.
Metro Bank's pro forma total capital ratio ended the first half at 18.8%. The lender also believes it is "highly liquid", recording a liquidity coverage of 163% at June 30.
"Metro Bank remains focused on balancing its growth, profitability and capital efficiency, delivered through managing the pace of the cost of growth, driving fee income and rebalancing its lending mix," the lender said.
Metro Bank added: "The bank is confident it will meet its MREL requirement as at January 1 2020, with a number of different options available to it."
MREL stands for minimum requirement for own funds and eligible liabilities and relates to EU solvency legislation.
Last week, Metro Bank PLC had to postpone a debt issue, blaming "current market conditions".
The UK challenger bank said a "broad number" of investors showed interest in the maiden MREL issuance, which it needed to complete to meet EU rules.
The Financial Times had reported Metro Bank had been forced to withdraw a GBP200 million to GBP250 million bond offering, after only receiving orders for GBP175 million.
The latest blow comes after UK regulators spotted an error in the bank's loan book, though Metro Bank had originally said it found the problem itself.
Shares in Metro Bank closed 3.8% higher in London on Monday at 200.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Metro Bank (MTRO)