In Barclays' case, Moody's said the overall bank also faces "ongoing profitability challenges". The downgrade had been expected by the City and had little impact on its share price and bonds. But it underlines the pressure on chief executive Jes Staley to turnaround Barclays, particularly its under-performing investment bank. It emerged last month the bank has been targeted by New York-based activist investor Edward Bramson, who has built up a 5pc stake in the lender. Barclays has drawn up battle plans to fend off any attacks.