Santander UK has become the first British high street bank to have its credit rating downgraded because of the recent trouble in the eurozone. This comes despite their reassurances on Tuesday:
Santander operates under a subsidiary model.
This means that Santander UK plc is completely autonomous from its Spanish parent company.
This structure acts as a firewall to prevent problems within one part of the group spreading to other units in the event of financial difficulties
Santander UK has been quick to reassure customers that their money is in safe hands, despite being downgraded by Moody's ratings agency.
The decision by a credit rating agency to downgrade Santander UK is another demonstration that the troubles in the eurozone affect us all