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S&P admits blunder over RBS warning

Monday 7 March 2011 - by Andrew Hickley

Standard & Poor's has admitted a series of "administrative errors" left a €1bn ($1.4bn) Royal Bank of Scotland fund on the brink of being downgraded for over a year and a half.

The credit rating agency came clean today that RBS's €1bn BBB-rated 4.625 per cent fixed-to-floating rate of subordinated notes was wrongly put on credit watch with negative implications on 4 August 2009.

Despite identifying the blunder on 15 September 2010, S&P then committed a further "administrative error" by leaving the fund on credit watch for another six months.

In a statement issued on Monday the credit rating agency said: "We have today rectified the errors by removing the issue from CreditWatch. The issue rating is unchanged at BBB."

A phone call to S&P on the matter has yet to be returned.

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