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Lloyds Banking Group plc Message Board

  • mrlloyds mrlloyds Sep 19, 2008 9:42 AM Flag

    LYG S&P Downgrade

    S&P Downgraded LYG to AA- and Target price is usd '15.00'.

    I have not read the details yet. I'll Keep you guys posted.

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    • Cant find any rating by S&P on downgrade.
      ..????
      PLEASE Give details

      • 2 Replies to rosslillian99
      • Here you go, from 5 stars to 1 star.

        09/18/08 05:33 pm ET ... S&P LOWERS RECOMMENDATION
        ON ADSS OF LLOYDS TO STRONG
        SELL FROM STRONG BUY (LYG 21.44*): LYG
        proposes acquisition of U.K. home loan company
        HBOS plc in a stock deal worth $22.2B, expected
        to be completed around year end '08.
        However, our downgrade reflects our view that
        this merger, amid a relaxed regulatory environment,
        will not deliver economic value that LYG
        is seeking. Also, we think in time that regulatory
        pressures on a combined company could resume,
        thereby potentially making anticipated
        benefits hard to come by. On reduced visibility
        and revisions to our tangible net asset value,
        we cut our 12-month target price to $15 from
        $36. /D.Chambers

      • ä 09/18/08 05:33 pm ET ... S&P LOWERS RECOM-
        MENDATION ON ADSS OF LLOYDS TO STRONG
        SELL FROM STRONG BUY (LYG 21.44*): LYG
        proposes acquisition of U.K. home loan compa-
        ny HBOS plc in a stock deal worth $22.2B, ex-
        pected to be completed around year end '08.
        However, our downgrade reflects our view that
        this merger, amid a relaxed regulatory environ-
        ment, will not deliver economic value that LYG
        is seeking. Also, we think in time that regulatory
        pressures on a combined company could re-
        sume, thereby potentially making anticipated
        benefits hard to come by. On reduced visibility
        and revisions to our tangible net asset value,
        we cut our 12-month target price to $15 from
        $36.

    • S&P Must have found religion.Or are they just plain Dumb ..(all the time.)or havnt they seen the market conditions and the terms of the HBOS merger...All stock transfer.
      Lloyds, Who by our estimates has about $48 Billion inreseves ..and are real bankers..know what they are doing...But does S&P know what they are doing.???
      Next Moodys will no douby be on the band wagon.
      These rating outfits are running scared...They didnt know it down..and they dont know it up.
      Why anyone believes in them is beyond comprehension.

    • Now I never expected Santa to come down my chimney. First because we didn't have one. Second, well, I'm sure you can guess.
      Anyone who relies on the S&P anymore should take the time to watch the following. It is an eye opener.

      http://www.cnbc.com/id/15840232?video=859038023&play=1

      • 3 Replies to menachembenyakov
      • WOW...Video... This Guy From S&P doesnt appear to know what is going on in the rating and assessing atmosphere.....and is most evasive.in his replies to fair and straight forward questions.

        WOW In these people we trust for rating guidance....Sad.Very Sad.

      • Mr. MBY, Most people on this board owned LYG before the HBOS deal and thought it was a good investment for reasons unrelated to HBOS. If HBOS is such a great deal why was it about to implode? LYG's dividend will be "rebased" next year(reduced), they are are increasing capital ratio(dilution) and buying mortgages on property whose value is decling. The stock was plunging until a temporary ban on shorting was put in place. Would you or someone else please provide opinion backed by facts and figures to make me believe HBOS is a good deal? Enjoy your posts. Thanks.

      • Thanks for the note, I can't get alerts but did log into my brokerage which has free S&P reports and they shared the same thing. Strong well and $15 target.

        The asinine part is just yesterday they maintained their rating and lowered only $4.00 to a $36 target. Their only justification for today's action was "reduced visibility".

 
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