"The outcome of this assessment could be a near term downgrade of the short- and/or long-term deposit rating or the placing of such rating on credit watch with negative implications." National Australia Bank (NAB) said the demerger of CYBG became effective today, February 2. NAB shareholders will receive 75 per cent of the shares in CYBG with the remainder to be sold in an initial public offering on the London Stock Exchange and the Australian Securities Exchange. The statement from NAB added: "CYBG is expected to have a senior standalone investment grade credit rating. "CYBG does not anticipate any such downgrade to have any material impact on its ability to raise funding, the overall cost of funding, or the financial outlook for CYBG. "A downgrade of the short and/or long-term deposit rating would require Clydesdale Bank to take mitigating actions in relation to its existing secured funding programmes."