Moody's downgraded the self-styled ethical lender's debt rating to 'junk' status and warned it needed to raise hundreds of millions of pounds to cover potential losses on property loans.

It carried out a 351 million rights issue in the summer to preserve its investment grade debt rating, but its debts have concerned shareholders.

While the company's debt rating was still considered investment-grade, its bonds were trading at levels slightly less, making future sales problematic.

It adds that governments should co-operate with the agencies so that sovereign debt ratings are as accurate as possible.

The record highs were caused by a better economic outlook throughout his term, larger foreign currency reserves, and a better debt rating that lowered interest rates.