Moody's downgrades Co-op Bank's debt rating

The Co-operative Bank says it is disappointed its banking operation has been downgraded by the ratings agency Moody's, which claims it may need "external support" to cover future losses.

The downgrade comes just weeks after it pulled out of a deal to buy more than 600 Lloyds bank branches.

Chris Skinner, a banking commentator and chairman of the Financial Services Club told BBC Radio 5 live's Breakfast that the Co-operative's ''acquisition of Britannia caused them some problems'' but they don't have ''big problems''.