Lloyds is at risk of debt rating downgrade as chief executive takes sudden leave of absence

Lloyds Banking Group was yesterday warned it could be downgraded by one of Britain’s top credit ratings agencies.

Moody’s blamed the senior management crisis at the bank, which is 40 per cent owned by the taxpayer.

New boss António Horta-Osório last week took a sudden leave of absence because of extreme fatigue and stress caused by over-work.

Sick leave: António Horta-Osório

In its note, published yesterday, Moody’s said: ‘We are concerned that the group may face a major challenge in ensuring continuity of leadership.’ 

On Tuesday the bank revealed that it lost £3.9billion between January and September this year.

The bank’s shares fell 4.7 per cent to just 27.5p yesterday. A spokesman said: ‘We will be working with Moody’s to assure them of the efficacy of our interim management arrangements.’

Acting chief executive Tim Tookey, who is due to leave Lloyds in February, is currently in charge after its Portuguese boss signed off on leave, possibly until the end of this year.

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