LONDON (AP) - The rating agency Standard & Poor's has downgraded its outlook on Lloyds Banking Group from stable to negative.
The agency said Thursday the revision was due to Lloyds' announcement that it was setting aside another 1 billion pounds ($1.6 billion) to compensate buyers of payment protection insurance. That raised Lloyds' total provision to 5.3 billion pounds.
The negative outlook means S&P is less likely to increase its assessment of Lloyds' capital and earnings over the coming year.
S&P reaffirmed, however, its A/A-1 credit rating for the bank.
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