National Australia Bank was meant to launch its IPO of its UK lender Clydesdale Bank on Tuesday but instead it told the market that it is shelving the float for 24 hours.
Why? Because a credit rating agency got in touch and launched a “specific request … for certain financial information relating to its assessment of Clydesdale Bank’s short – and/or long-term deposit rating.“
It warned that the assessment may affect Clydesdale’s credit rating.
National Australia Bank said in a statement (emphasis ours):
The deposit rating is utilised by certain secured funding programmes, which represent 13% of CYBG’s total funding.
The outcome of this assessment could be a near-term downgrade of the short- and/or long-term deposit rating or the placing of such rating on credit watch with negative implications.
CYBG is expected to have a senior standalone investment grade credit rating.
CYBG does not anticipate any such downgrade to have any material impact on its ability to raise funding, the overall cost of funding, or the financial outlook for CYBG.
A downgrade of the short – and/or long-term deposit rating would require Clydesdale Bank to take mitigating actions in relation to its existing secured funding programmes.
This ratings development may not occur, and should it occur, is not considered material to the financial position and outlook of CYBG.
Clydesdale Bank expected to float at 180 pence per share on Tuesday but the group said that its final pricing now won’t be confirmed until February 3.