Moody's cuts Barclays rating outlook to negative

Ratings agency Moody's has changed its outlook for Barclays's standalone bank financial strength rating (BFSR), currently at C-/baa2, to negative from stable. The A2 senior debt and deposits rating had already been lowered to a negative outlook due to expectations that the UK will reduce its support for the financial sector over the medium term."Specifically, the shareholder and political pressures on Barclays, which resulted in the resignation of the bank's Chief Executive Officer (CEO), Chief Operating Officer and the stated intention of the Chairman to resign, 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 said.Moody's said that the bank could be challenged to replace the three senior staff, particularly a CEO that has sufficient expertise in investment banking to run Barclays but "also has the credibility and ability to swiftly address the weaknesses that the LIBOR incident revealed and stakeholders' perceptions of the investment bank."SC