Bradford & Bingley executive bails as ship begins to sink

02 September 2008 / by Rebecca Sargent
Sales director at Bradford & Bingley, Mark Stevens, has jumped ship amid the never ending gloom that haunts the buy to let mortgage specialist.

According to reports, Mr Stevens had only been with the lender since May last year, sparking rumours that he has left because of the bank's continued losses.

Just last week B&B announced devastating results for the first half of 2008 as, despite a controversial rights issue that raised £400million, the lender suffered losses of almost £27million.

Commenting on the results at the time, B&B chairman Rod Kent, said: "In the light of the turbulence in the banking and housing sectors, the first six months of this year have been very challenging for B&B. Although we clearly signalled this at our announcement on 2nd June, the results for the half year are, of course, disappointing."

This week has shown no mercy for the buy to let mortgage specialist as yesterday Fitch Ratings downgraded the bank's credit rating from A- to BBB+, which is just two notches above junk.

Commenting on its decision, Fitch stated: "The rating action follows B&B's 2008 interim results announcement. The revised ratings reflect Fitch's view of the deterioration in the underlying performance of the bank."

The news of one executive leaving comes as another begins – the bank welcomed Richard Pym as its chief executive just two weeks ago, a move that was hoped would boost confidence in the lender.

Looking on the positive side and sparking hope for the mortgage lender, Fitch added: "Fitch views positively the completion of the rights issue boosting the bank's capital position and the arrival of a new experienced chief executive."

© Fair Investment Company Ltd