UK Bank Credit Rating Report - Q4 2026

Executive Summary - Q4 2026

The UK banking sector shows positive momentum for Q4 2026, with credit ratings generally improving. Of the 69 banks monitored, 15 have experienced upgrades while 6 have seen downgrades. 25 banks (36%) maintain investment grade status. The outlook distribution shows 3 banks with positive outlook, 17 stable, and 1 negative, suggesting potential for further upgrades in the coming period.

Key Highlights:

25 banks maintain investment grade ratings (BBB-/Baa3 or higher)

15 banks upgraded during this period

6 banks experienced rating downgrades

3 banks have positive outlook, indicating potential upgrades

1 bank have negative outlook, watch for potential downgrades

Rating Grade Distribution

Prime

11%

High Grade

2130%

Medium

34%

Speculative

23%

Not Rated

4261%

Rating Upgrades (15)

Bank	Current Rating	Agencies	Outlook	Actions
Handelsbanken	AA	S&P, Moody's, Fitch	—	View Details
Coutts & Company	AA-	S&P, Moody's, Fitch	Stable	View Details
Lloyds Bank plc	AA-	S&P, Moody's, Fitch	—	View Details
NatWest	AA-	S&P, Moody's, Fitch	Stable	View Details
Royal Bank of Scotland	AA-	S&P, Moody's, Fitch	Stable	View Details
Sainsbury's Bank Plc	AA-	S&P, Moody's, Fitch	Stable	View Details
Tesco Bank	A+	S&P, Moody's, Fitch	Stable	View Details
TSB Bank plc	A+	Moody's	Stable	View Details
Co-operative Bank plc	A	Moody's, Fitch	Stable	View Details
Coventry Building Society	A	Moody's, Fitch	Stable	View Details
Clydesdale Bank PLC	A-	S&P, Fitch	Stable	View Details
Virgin Money UK PLC	A-	S&P, Fitch	Stable	View Details
Yorkshire Bank	A-	S&P, Fitch	Stable	View Details
Close Brothers Limited	BBB+	Moody's, Fitch	Negative	View Details
Metro Bank PLC	BB	Fitch	Positive	View Details

H

Handelsbanken

S&P, Moody's, Fitch | 10 Jul

AA

—

C

Coutts & Company

S&P, Moody's, Fitch | 10 Jul

AA-

Stable

L

Lloyds Bank plc

S&P, Moody's, Fitch | 19 Jul

AA-

—

N

NatWest

S&P, Moody's, Fitch | 19 Jul

AA-

Stable

R

Royal Bank of Scotland

S&P, Moody's, Fitch | 10 Jul

AA-

Stable

S

Sainsbury's Bank Plc

S&P, Moody's, Fitch | 10 Jul

AA-

Stable

T

Tesco Bank

S&P, Moody's, Fitch | 10 Jul

A+

Stable

T

TSB Bank plc

Moody's | 15 Oct

A+

Stable

C

Co-operative Bank plc

Moody's, Fitch | 14 Jul

A

Stable

C

Coventry Building Society

Moody's, Fitch | 12 Oct

A

Stable

C

Clydesdale Bank PLC

S&P, Fitch | 12 Oct

A-

Stable

V

Virgin Money UK PLC

S&P, Fitch | 12 Oct

A-

Stable

Y

Yorkshire Bank

S&P, Fitch | 12 Oct

A-

Stable

C

Close Brothers Limited

Moody's, Fitch | 10 Jul

BBB+

Negative

M

Metro Bank PLC

Fitch | 15 Aug

BB

Positive

Rating Downgrades (6)

Bank	Current Rating	Agencies	Outlook	Actions
Bank of Scotland plc	AA-	S&P, Moody's, Fitch	—	View Details
HSBC UK Bank plc	AA-	S&P, Moody's, Fitch	Positive	View Details
Barclays Bank UK PLC	A+	S&P, Moody's, Fitch	Stable	View Details
Nationwide Building Society	A+	S&P, Moody's, Fitch	Stable	View Details
Standard Chartered Bank	A+	S&P, Moody's, Fitch	—	View Details
Santander UK plc	A+	S&P, Moody's, Fitch	Stable	View Details