Co-op clinches S&P upgrade

Tim Wallace
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THE CO-OP Group is in better shape than expected after the rescue of its banking arm cost less than feared, credit ratings agency Standard & Poor’s said yesterday. S&P raised the Co-op Group’s credit rating from B to B+, with a stable outlook.

A £1.5bn capital hole was uncovered at the bank last summer, and the group had thought it would have to contribute up to £1bn towards filling the hole. Investors put more money in than initially expected, meaning the Co-op Group spent £500m less than anticipated.