Fitch downgrades Standard Chartered after poor results

Fitch ratings today downgraded Standard Chartered plc and its subsidiary Standard Chartered Bank's long-term issuer default ratings (IDRs) to 'A+' from 'AA-'.
"The rating actions follow the bank's 3Q15 results announcement and its new strategic plan which is accompanied by a USD 5.1 bn rights issue. The bank's restructuring is comprehensive as it targets about USD 100 bn out of USD 315 bn of risk weighted assets (RWAs) at end-3Q 15," Fitch said in a statement.
The rating agency further said increasing correlations between its key emerging markets will continue to diminish some of the geographical diversification benefits of Standard Charter's strong franchise.

Fitch pointed out that the downgrades reflect Standard Charter's unfavourable profitability and asset quality trends as well as its underperformance relative to peers.