Moody’s confirms Coventry Building Society strength

Coventry Building Society, which has retained "A" ratings from Moody's Investor Service throughout the credit crisis, has had its position as one of the UK's strongest building societies reaffirmed by an assessment issued today by the credit rating agency.

Moody's update recognises Coventry's strong financial performance throughout the economic downturn.  The agency has taken positive action in a number of areas including upgrading the Baseline Credit Assessment  and related subordinated and junior subordinated ratings, whilst affirming Coventry's deposit and financial strength ratings.  In addition, and despite continued uncertainties about the economy as a whole, the credit agency changed the outlook rating for future assessments to stable.

Moody's assessment was based on five key indicators:  1) Good asset quality relative to Coventry's peer group, 2) Solid earnings performance over the last 18 months including the recently announced rise in half year profits to £43.5 million 3) Strong retention of capital with Core Tier 1 capital reported at 26.9% (£622 million) at the 30 June 2010, 4) Consistently improving cost efficiency, 5) Continued savings acquisition enabling fully funded growth in lending.

Rob Green, Finance Director of Coventry Building Society, said, "This is a positive move that recognises the continued strength of Coventry Building Society. Despite the economic downturn we have attracted record new savings and maintained an active lending position in support of the housing market.  This has been achieved through a rigorous approach to credit quality, efficiency and cost control and has meant that Coventry has remained a strong and secure safe haven for its one and half million members."