 "StanChart shares plunge 7%")
Standard Chartered Plc shares slumped in Hong Kong after Fitch Ratings downgraded the bank, citing the outlook for the lender's profits and asset quality. The London-based bank this week unveiled plans to tap investors for $5.1 billion, eliminate thousands of jobs and cut risky assets across Asia.
The bank's shares fell as much as 7.1 per cent Friday in Hong Kong. They were down 4.8 per cent as of 11.30 am local time, extending this year's decline to 35 per cent.
The benchmark Hang Seng Index slipped 0.9 per cent. Standard Chartered is now lagging behind the Bloomberg World Banks Index by the most since the gauge started in 2003.
While Chief Executive Officer Bill Winters's measures to restructure the lender and boost capital address some of Fitch's concerns about the bank, implementing the plan could be challenging because of credit risks and high management and staff turnover, the ratings firm said in a statement. Fitch on Thursday cut the lender's credit rating one grade to A+ from AA-, with a negative outlook.
The bank's shares fell as much as 7.1 per cent Friday in Hong Kong. They were down 4.8 per cent as of 11.30 am local time, extending this year's decline to 35 per cent.
The benchmark Hang Seng Index slipped 0.9 per cent. Standard Chartered is now lagging behind the Bloomberg World Banks Index by the most since the gauge started in 2003.
While Chief Executive Officer Bill Winters's measures to restructure the lender and boost capital address some of Fitch's concerns about the bank, implementing the plan could be challenging because of credit risks and high management and staff turnover, the ratings firm said in a statement. Fitch on Thursday cut the lender's credit rating one grade to A+ from AA-, with a negative outlook.