Credit rating agency Moody’s has cut the Aaa rating of the Lloyds Group as anxieties about increasing losses from HBOS continue, according to media reports.

The cut in Moody’s long-term rating of the bank was accompanied by a warning by the credit rating agency of the further challenges facing the group, which has major private banking interests.

Lloyds received its Aaa rating in 2000. The cut by three grades to Aa3 brings Lloyds level with RBS and Barclays.

A UK government spokesman said: “While nothing is ruled out, no active consideration is being given to the nationalisation of Lloyds.”