Shares in Clydesdale and Yorkshire banking group (CYBG) were floated this week, in spite of a hiccup caused by a credit rating agency.
The initial public offering was delayed by 24 hours following requests from an unspecified rating agency for additional information regarding its assessment of Clydesdale Bank's deposit rating. Any change could see the bank's short and/or long-term deposit rating being downgraded or its rating being placed on credit watch with negative implications, CYBG owner National Australia Bank said.
It added that the deposit rating only relates to 13 per cent of CYBG's total funding.
There was clearly no concern among investors though, as at the time of writing the shares traded at almost 191p - more than 4 per cent up on the 180p a share initial price.
CYBG, which includes Clydesdale Bank and Yorkshire Bank, is being sold by NAB as part of its exit from the UK. Three-quarters of the shares are being kept by NAB shareholders, while the remaining quarter was sold to institutional investors via the offering.
