By James Salmon PUBLISHED: 02:30 EST, 10 May 2013 | UPDATED: 19:21 EST, 10 May 2013 The Co-op Bank was last night battling to reassure millions of customers it does not need a bailout from taxpayers – after its credit rating was downgraded to ‘junk’ status. Ratings agency Moody’s warned that the bank might need ‘external support’ amid spiralling losses on bad loans. It assigned the lender the same ‘junk’ credit rating that bailed-out nations Greece and Portugal received in 2010. This marks a humiliating blow for the Co-op, which was last year awarded the accolade of Europe’s ‘most sustainable bank’ by the Financial Times for the third year running.
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Barry Toottell quits as chief executive after Moody's downgrade
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Bank faces £1billion capital blackhole which could force asset sales
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Agency predicts the UK authorities may have to come to lender's rescue
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Comes just a month after deal to buy 632 Lloyds branches collapsed
The @placeholder's credit ratings agency raised doubts about the Co-Operative banks ability to raise funds to plug gaps in its balance sheet