London, 13 July 2021 -- Moody's Investors Service (Moody's) has today taken rating actions on
Barclays, Lloyds, Santander UK and Close Brothers banking
groups and on Nationwide Building Society, including the upgrade
of the long-term senior ratings of Lloyds Banking Group plc and
Close Brothers Group plc. The rating actions were driven by revisions
to Moody's Advanced Loss Given Failure (Advanced LGF) framework,
which is applied to banks operating in jurisdictions with Operational
Resolution Regimes, following the publication of Moody's updated
Banks Methodology on 9 July 2021. This methodology is available
at this link: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1269625.
A full list of affected ratings and assessments can be found at the end
of this Press Release.
RATINGS RATIONALE
Today's rating actions were driven by revisions to the Advanced Loss Given
Failure framework within Moody's updated Banks Methodology: a revised
notching guidance table, with thresholds at lower levels of subordination
and volume in the liability structure have been applied to the UK banks
and Additional Tier 1 (AT1) securities issued by banks domiciled in the
UK have been included in the Advanced LGF framework, eliminating
the previous analytical distinction between those high trigger instruments
that were deemed to provide equity-like absorption of losses before
the point of failure and other AT1 securities.
Moody's removal of equity credit for high trigger Additional Tier
1 (AT1) instruments from banks' going concern capital means that
affected banks have reduced capacity to absorb unexpected losses before
the point of failure, everything else being equal.
For Barclays PLC and Barclays Bank PLC, the rating actions also
reflect Moody's view that group-wide resolutions coordinated in
a unified manner will be more common following the requirement to issue
internal loss absorbing capital (ILAC), leading to a likely transfer
of losses from subsidiaries (i.e., Barclays Bank Ireland
PLC) to parents at the point of failure.
RATINGS RATIONALE FOR INDIVIDUAL BANKS
- BARCLAYS PLC: Baseline Credit Assessment (BCA) affirmed,
subordinate debt ratings upgraded
Moody's upgraded Barclays PLC's (Barclays) subordinate debt
ratings to Baa2 from Baa3 and subordinate MTN program and subordinate
shelf ratings to (P)Baa2 from (P)Baa3. The upgrade reflects the
affirmation of the Barclays' baa2 notional BCA and the rating agency's
lower loss-given-failure assumptions for the subordinate
bondholders. At the same time, Moody's affirmed the
holding company's other ratings and assessments and maintained the
stable outlook on its long-term senior ratings.
The ratings upgrade reflects Moody's revised Advanced Loss Given
Failure framework. Moody's now expects Barclays' subordinate
bondholders to face moderate loss-given-failure (from high),
in line with the holding company's senior unsecured bondholders.
The affirmation of Barclays' notional BCA reflects the impact of
the exclusion of AT1 from the measure of capital offset by Moody's
expectation of improving profitability and lower credit risks over the
outlook period.
- BARCLAYS BANK PLC: BCA affirmed, subordinate and
junior subordinate debt ratings upgraded
Moody's upgraded Barclays Bank PLC's (Barclays Bank) subordinate
debt ratings to Baa2 from Baa3, subordinate MTN program rating to
(P)Baa2 from (P)Baa3 and junior subordinate debt ratings to Baa3(hyb)
from Ba1(hyb). At the same time, the rating agency affirmed
all other ratings and assessments of the bank.
The ratings upgrade reflects Moody's revised Advanced Loss Given
Failure framework. Moody's now expects the bank's subordinate
and junior subordinate bondholders to face moderate loss-given-failure
(from high), in line with the holding company's senior unsecured
bondholders. The agency applies an additional notching for junior
subordinated instruments to incorporate coupon features.
The affirmation of Barclays Bank's BCA reflects the impact of the
exclusion of AT1 from the measure of capital, offset by Moody's
expectation of improving profitability and lower credit risks over the
outlook period.
- BARCLAYS BANK UK: BCA and ratings affirmed
Moody's affirmed all ratings and assessments of Barclays Bank UK
PLC (Barclays Bank UK). The rating affirmation follows the affirmation
of the BCA and Moody's unchanged assumptions of low loss-given-failure
for depositors.
The ratings affirmation reflects Moody's revised Advanced Loss Given
Failure framework. Moody's continues to expect the bank's
depositors to face very low loss-given-failure.
The affirmation of Barclays Bank UK's BCA reflects the impact of
the exclusion of AT1 from the measure of capital, Moody's
expectation of weaker profitability, lower credit risks and an improved
funding profile over the outlook period.
- LLOYDS BANKING GROUP PLC: BCA affirmed, senior unsecured,
subordinate, backed junior subordinate debt and other short term
ratings upgraded
Moody's upgraded Lloyds Banking Group plc's (LBG) long-term
senior unsecured debt ratings to A2 from A3, the long-term
subordinate debt ratings to A3 from Baa1, the backed junior subordinate
ratings to Baa1(hyb) from Baa2(hyb) and the other short term ratings to
(P)P-1 from (P)P-2. The rating agency affirmed the
a3 notional BCA, the adjusted BCA and all other ratings of the holding
company.
The ratings upgrade reflects Moody's revised Advanced Loss Given
Failure framework. Moody's now expects the holding company's
senior unsecured bondholders to face low loss-given failure (from
moderate) and the subordinate and junior subordinate bondholders to face
moderate loss-given-failure (from high). The agency
applies an additional notching for junior subordinated instruments to
incorporate coupon features.
The affirmation of LBG's notional BCA reflects the impact of the
exclusion of AT1 from the measure of capital and Moody's expectation
that improved profitability of the banking business will mitigate weaker
contribution from the insurance business over the outlook period.
- LLOYDS BANK PLC and subsidiaries: BCA affirmed, subordinate
and junior subordinate debt ratings upgraded
Moody's upgraded Lloyds Bank plc (LB) and its subsidiaries' long-term
subordinate debt ratings to A3 from Baa1, subordinate MTN program
ratings to (P)A3 from (P)Baa1 and the junior subordinate ratings of LB
and its subsidiaries to Baa1(hyb) from Baa2(hyb). The BCA,
Adjusted BCA and other ratings and assessments of the bank were affirmed.
The ratings upgrade reflects Moody's revised Advanced Loss Given
Failure framework. Moody's now expects the bank's subordinate
and junior subordinate bondholders to face moderate loss-given-failure
(from high). The agency applies an additional notching for junior
subordinated instruments to incorporate coupon features.
The affirmation of the BCA reflects the impact of the exclusion of AT1
from the measure of capital and Moody's expectation of improved
profitability of the bank.
- LLOYDS BANK CORPORATE MARKETS plc and subsidiary: BCA and
ratings affirmed
Moody's affirmed the baa3 BCA, the baa1 adjusted BCA and all
the ratings and assessments of Lloyds Bank Corporate Markets plc (LBCM)
and its subsidiary.
The ratings affirmation reflects Moody's revised Advanced Loss Given
Failure framework. Moody's continues to expect the bank's
depositors and senior unsecured bondholders to face extremely low loss-given-failure.
The affirmation of the BCA reflects the impact of the exclusion of AT1
from the measure of capital, which led the financial profile of
the bank to worsen, but also a more transparent and durable business
model, reflected in more stable earnings.
- SANTANDER UK PLC: BCA downgraded; junior subordinate
debt ratings, preference stock cumulative and non-cumulative
ratings downgraded
Moody's downgraded the BCA and the Adjusted BCA of Santander UK
plc (Santander UK, the ring-fenced bank) and Santander Financial
Services plc (SFS, the non-ring fenced bank) to baa1 from
a3. The agency also downgraded Santander UK's junior subordinate
debt ratings to Baa3(hyb) from Baa2(hyb), its preference stock cumulative
ratings to Baa3(hyb) from Baa2(hyb) and its preference stock non-cumulative
ratings to Ba1(hyb) from Baa3(hyb). The other ratings and assessments
were affirmed.
The downgrade of Santander UK's BCA reflects Moody's assessment
of modest levels of business diversification: its mortgage business
represents around four fifths of the loan book and of revenue; it
also reflects expected pressures on profitability over the outlook period
due to competition in the UK mortgage market, and an expectation
of maintenance of good asset quality.
The downgrade of Santander UK's junior subordinate, cumulative
and non-cumulative preference shares reflects the downgrade of
the bank's BCA and adjusted BCA, Moody's revised Advanced
Loss Given Failure framework and Moody's unchanged view of high
low loss-given-failure. The agency applies an additional
notching for junior subordinated instruments to incorporate coupon features.
The affirmation of the Santander UK's deposit and senior unsecured
debt ratings reflects the downgrade of the BCA and Adjusted BCA,
Moody's revised Advanced Loss Given Failure framework and Moody's
expectation of very low loss-given-failure and moderate
government support, which provides one additional notch.
Moody's also said that the ratings of the Santander Financial Services
plc (SFS) are aligned to those of Santander UK. According to the
rating agency, there is a high level of operational integration
between Santander UK and SFS. For these reasons, Moody's
classified SFS as a Highly Integrated Entity (HIE) of Santander UK;
the BCA of SFS thus remains aligned to that of Santander UK. Moody's
believes that, in case of failure, Santander UK and SFS would
be resolved together; the rating agency therefore maintains the same
loss-given-failure and government support assumptions for
the depositors and bondholders of Santander UK and SFS, leading
to ratings that are aligned for the two banks.
- SANTANDER UK GROUP HOLDINGS PLC: BCA downgraded; ratings
affirmed.
Moody's downgraded the notional BCA and the Adjusted notional BCA
of Santander UK Group Holdings plc (Santander UK Group, the holding
company) to baa1 from a3 and affirmed all its ratings.
The affirmation of Santander UK Group's ratings reflects the downgrade
of the notional BCA, and Moody's revised Advanced Loss Given
Failure framework. Moody's expects the holding company's
senior and subordinate bondholders and the bank's subordinate bondholders
to face moderate loss-given-failure (from high).
- NATIONWIDE BUILDING SOCIETY: BCA affirmed, junior
senior unsecured debt rating upgraded
Moody's upgraded Nationwide Building Society's (Nationwide)
long-term junior senior unsecured debt rating to Baa1 from Baa2
and long-term junior senior unsecured MTN program ratings to (P)Baa1
from (P)Baa2. The upgrade reflects the affirmation of the society's
baa1 standalone BCA and the rating agency's lower loss-given-failure
assumptions for the junior senior bondholders. The agency affirmed
the other ratings and assessments of the society.
The ratings upgrade reflects the affirmation of Nationwide's BCA
and Moody's revised Advanced Loss Given Failure framework.
Moody's now expects the society's junior senior bondholders
to face moderate loss-given-failure (from high).
The affirmation of Nationwide's BCA reflects the bank's very
low stock of problem loans, very high risk-weighted capital
ratios and ample stock of liquid assets, including pre-positioned
assets with the Bank of England, but also weak profitability and
concentration of revenue and risks in UK residential mortgages.
- CLOSE BROTHERS GROUP PLC: Close Brothers Limited's
BCA affirmed, senior unsecured debt rating upgraded
Moody's upgraded Close Brothers Group plc's (Close Brothers
Group, the holding company) issuer rating to A2/P-1 from
A3/P-2 and the long term senior unsecured debt rating to A2 from
A3. At the same time, the rating agency affirmed all other
ratings and assessments of Close Brothers Group, Close Brothers
Limited and Close Brothers Finance plc.
The holding company's senior unsecured debt rating upgrade reflects
the affirmation of Close Brothers Limited's a2 BCA, Moody's
revised Advanced Loss Given Failure framework and low probability of government
support, which does not result in any uplift. Moody's
now expects the holding company's senior bondholders to face moderate
loss-given-failure (from high).
The affirmation of Close Brothers Limited's BCA reflects the bank's
solid track record over economic cycles, strong capital and leverage
and historically high profitability.
OUTLOOKS
Moody's changed the outlook to stable from negative on the deposits
ratings of one bank (Barclays Bank UK) and senior ratings of two holding
companies (Lloyds Banking Group and Santander UK Group). The rating
agency maintained the stable outlook on the ratings of Nationwide and
maintained the negative outlook on the ratings of Close Brothers Group
and its rated subsidiaries.
The stable outlooks reflect Moody's view that the combined solvency
and liquidity metrics will on a forward-looking basis remain in
line with the affected banks' current standalone assessment,
as their asset quality and profitability stabilizes, following the
pandemic-induced deterioration in 2020.
The negative outlook on Close Brothers Group, Close Brothers Limited,
and Close Brothers Finance plc reflects the negative pressures arising
from lower levels of revenue and profitability than in recent years and
high lending exposures to small and medium corporates, negatively
impacted by the coronavirus pandemic.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
BARCLAYS PLC
Barclays' ratings could be upgraded following a sustained improvement
in its asset risk, capital, profitability, and funding
profiles translating into an upgrade of its baa2 notional BCA or an improvement
of the standalone credit profile of its main subsidiary, Barclays
Bank. Barclays' ratings could also be upgraded if the group were
to issue a substantially higher stock of bail-in-able liabilities,
affording greater protection to its creditors.
Barclays' ratings could be downgraded following a deterioration of the
standalone credit profiles of its two main subsidiaries Barclays Bank
and Barclays Bank UK, beyond our current expectations and leading
to a downgrade of its baa2 notional BCA. Barclays' ratings could
also be downgraded if the group were to retain a lower stock of bail-in-able
liabilities.
BARCLAYS BANK PLC
Barclays Bank's ratings could be upgraded if the bank were to increase
profitability to a higher level on a sustainable basis, decrease
exposure to capital markets earnings or increase earnings diversification,
improve its asset risk profile or lower its reliance on confidence-sensitive
wholesale funding. However, a one notch upgrade of the BCA
would not lead to a ratings upgrade, due to the loss of one notch
of affiliate support (unless the BCA of Barclays, the holding company,
was also upgraded).
Barclays Bank's ratings could be downgraded in case of a deterioration
in asset risk beyond our current expectations; a material deterioration
in the bank's capital and liquidity positions; and an increase in
risk appetite or leverage or a material risk management failure.
However, a one notch downgrade of the bank's BCA would not result
in a ratings downgrade (unless the notional BCA of Barclays, the
holding company, was also downgraded). Barclays Bank's
ratings could also be downgraded following a downgrade of the notional
BCA of Barclays, resulting in a reduction of parental support notching
to zero. The ratings for Barclays Bank could finally be downgraded
in the case of a lower degree of protection for its creditors from the
stock of bail-in-able debt, which we assess through
its Advanced LGF analysis.
BARCLAYS BANK UK PLC
Barclays Bank UK's ratings could be upgraded following an upgrade to the
BCA supported by a potential improvement of the UK's operating environment
and/or an increase in profitability and liquidity. An upgrade of
Barclays Bank UK's long-term deposit rating could also result from
a higher stock of bail-in-able liabilities that would provide
higher protection for the bank's junior depositors.
Barclays Bank UK's ratings could be downgraded following a downgrade
of the BCA driven by a deterioration of the UK operating environment,
which would lead to a deterioration in asset quality, weaker profitability,
lower capitalisation or a deterioration in liquidity. A downgrade
of the BCA would likely lead to a rating downgrade. The rating
could also be downgraded due to a reduction in the stock of bail-in-able
liabilities that would reduce the degree of protection for junior depositors.
LLOYDS BANKING GROUP PLC
LBG's long-term ratings could be upgraded following an upgrade
of the notional BCA of LBG supported by higher capital buffers,
increased profitability, or lower problem loans. LBG's senior
unsecured debt rating could also be upgraded following a significant increase
in the stock of subordinated debt issued by LBG or externally by Lloyds
Bank.
LBG's ratings could be downgraded following a downgrade of the notional
BCA driven by higher problem loans, or a material deterioration
in the group's capital and asset risk metrics. The ratings of LBG
could also be downgraded following a reduction in its stock of externally
issued unsecured debt.
LLOYDS BANK PLC
Lloyds Bank's long-term ratings could be upgraded following
an upgrade of its BCA benefiting from lower problem loans, higher
profitability and liquidity buffers increase.
Lloyds Bank's junior ratings could be downgraded following a downgrade
of its BCA as a result of a material decline in the group's capital metrics,
higher problem loans or lower profitability. A one notch downgrade
of the bank's BCA would not lead to a downgrade of its senior ratings,
as government support would increase by one notch, neutralising
the BCA decrease.
LLOYDS BANK CORPORATE MARKETS PLC
LBCM's long-term deposit and issuer ratings could be upgraded following
an upgrade of the bank's BCA, or an upgrade of LBG's notional BCA.
LBCM's BCA could be upgraded following a strong track record of stable
earnings as an independent entity, or a more limited reliance on
market funding.
LBCM's deposit and issuer ratings could be downgraded following a material
reduction of its stock of bail-in-able debt, a downgrade
of LBG's notional BCA, or a downgrade of LBCM's BCA. LBCM's
BCA could be downgraded following a material deterioration of the bank's
profitability, a more aggressive risk appetite in its lending book
or capital markets franchise, or a material reduction of capital
or liquid assets.
SANTANDER UK HOLDINGS GROUP PLC, SANTANDER UK PLC, SANTANDER
FINANCIAL SERVICES PLC
Santander UK's and Santander UK Holdings Group's ratings could be
upgraded following an upgrade of Santander UK's BCA, supported by
improved profitability, lower level of problem loans and reduced
reliance on its moderate market funding. The BCA could also be
upgraded if the bank were able to increase the level of diversification
of its business.
Santander UK's ratings could be downgraded following a downgrade of Santander
UK's BCA driven by a significant deterioration in the bank's asset-quality
metrics, a material weakening in profitability or a deterioration
in the bank's funding and liquidity position, including a further
reduction in the quantity or quality of its liquidity buffer. Santander
UK Group's senior holdco debt rating could be downgraded following a downgrade
of Santander UK's BCA or following a material reduction in the volume
of bail-in-able debt.
NATIONWIDE BUILDING SOCIETY
Nationwide's long-term ratings could be upgraded following
an upgrade of the society's BCA. The BCA could be upgraded
if profitability improves and the stock of high-quality liquid
assets increases.
Nationwide's long-term ratings could be downgraded following
a downgrade of the BCA. A downgrade of the BCA could be driven
by a sharp deterioration in the society's stock of problem loans,
leverage or profitability.
The senior debt rating would be downgraded if the society issues less
debt than envisaged under its current funding plan, or assets grow
more than currently planned.
CLOSE BROTHERS
Moody's believes that a rating upgrade is unlikely given the bank's
and the group's above-system lending growth, exposure
to certain cyclical sectors and the risk inherent in the group's
securities business. However, the group's and the bank's
ratings could be upgraded following an upgrade of the BCA supported by
improved asset quality metrics and increased customer deposit funding.
The group's and the bank's ratings could be downgraded,
following a downgrade of its BCA due to continued above-system-average
loan book growth, combined with asset quality deterioration,
lower levels of capitalization or a weakening of the currently sound risk
management framework and processes. The deposit and senior unsecured
debt ratings could also be downgraded because of a reduction in the volume
of bail-in-able wholesale and institutional deposits and
senior debt, which would increase loss-given-failure.
LIST OF AFFECTED RATINGS
..Issuer: Lloyds Banking Group plc
Upgrades:
....BACKED Junior Subordinated Regular Bond/Debenture,
Upgraded to Baa1 (hyb) from Baa2 (hyb)
....Subordinate Medium-Term Note Program,
Upgraded to (P)A3 from (P)Baa1
....Senior Unsecured Regular Bond/Debenture,
Upgraded to A2 from A3, Outlook Changed to Stable From Negative
....Subordinate Regular Bond/Debenture,
Upgraded to A3 from Baa1
....Senior Unsecured Medium-Term Note
Program, Upgraded to (P)A2 from (P)A3
....Other Short Term, Upgraded to (P)P-1
from (P)P-2
....Senior Unsec. Shelf, Upgraded
to (P)A2 from (P)A3
....Subordinate Shelf, Upgraded to (P)A3
from (P)Baa1
Affirmations:
....Adjusted Baseline Credit Assessment,
Affirmed a3
....Baseline Credit Assessment, Affirmed
a3
....Preference Shelf, Affirmed (P)Baa3
....Pref. Stock Non-cumulative,
Affirmed Baa3 (hyb)
Outlook Action:
....Outlook, Changed To Stable From
Negative
..Issuer: Lloyds Bank Corporate Markets plc
Affirmations:
....Adjusted Baseline Credit Assessment,
Affirmed baa1
....Baseline Credit Assessment, Affirmed
baa3
....Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed A1
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Long-term Issuer Ratings,
Affirmed A1, Outlook Remains Stable
....Short-term Bank Deposit Ratings,
Affirmed P-1
....Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Remains Stable
....Commercial Paper, Affirmed P-1
....Senior Unsecured Medium-Term Note
Program, Affirmed (P)A1
....Other Short Term, Affirmed (P)P-1
....Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Remains Stable
....ST Deposit Note/CD Program, Affirmed
P-1
Outlook Action:
....Outlook, Remains Stable
..Issuer: Lloyds Bank Corporate Markets plc,
NY Branch
Affirmation:
....Commercial Paper, Affirmed P-1
Assignments:
....Long-term Counterparty Risk Assessment,
Assigned A1(cr)
....Short-term Counterparty Risk Assessment,
Assigned P-1(cr)
....Long-term Counterparty Risk Ratings,
Assigned A1
....Short-term Counterparty Risk Ratings,
Assigned P-1
Outlook Action:
....No Outlook
..Issuer: Lloyds Bank plc
Upgrades:
....Junior Subordinated Regular Bond/Debenture,
Upgraded to Baa1 (hyb) from Baa2 (hyb)
....Subordinate Regular Bond/Debenture,
Upgraded to A3 from Baa1
....Subordinate Medium-Term Note Program,
Upgraded to (P)A3 from (P)Baa1
Affirmations:
....Commercial Paper, Affirmed P-1
....Short-term Bank Deposit Ratings,
Affirmed P-1
....Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Remains Stable
....Pref. Stock, Affirmed Baa3
(hyb)
....Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Remains Stable
....BACKED Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Remains Stable
....Senior Unsec. Shelf , Affirmed
(P)A1
....Senior Unsecured Medium-Term Note
Program , Affirmed (P)A1
....Other Short Term, Affirmed (P)P-1
....Adjusted Baseline Credit Assessment,
Affirmed a3
....Baseline Credit Assessment, Affirmed
a3
....Long-term Counterparty Risk Assessment,
Affirmed Aa3(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed Aa3
....Short-term Counterparty Risk Ratings,
Affirmed P-1
Outlook Action:
....Outlook, Remains Stable
..Issuer: Cheltenham & Gloucester plc
Upgrade:
....BACKED Junior Subordinated Regular Bond/Debenture,
Upgraded to Baa1 (hyb) from Baa2 (hyb) (assumed by Lloyds Bank plc)
Outlook Action:
....No Outlook
..Issuer: HBOS plc
Upgrades:
....Junior Subordinated Regular Bond/Debenture,
Upgraded to Baa1 (hyb) from Baa2 (hyb)
....Subordinate Regular Bond/Debenture,
Upgraded to A3 from Baa1
Affirmations:
....Long-term Counterparty Risk Assessment,
Affirmed Aa3(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed Aa3
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Long-term Issuer Rating,
Affirmed A1, Outlook Remains Stable
....Short-term Issuer Rating,
Affirmed P-1
Outlook Action:
....Outlook, Remains Stable
..Issuer: Bank of Scotland plc
Upgrade:
....Junior Subordinated Regular Bond/Debenture,
Upgraded to Baa1 (hyb) from Baa2 (hyb)
Affirmations:
....Adjusted Baseline Credit Assessment,
Affirmed a3
....Baseline Credit Assessment, Affirmed
a3
....Long-term Counterparty Risk Assessment,
Affirmed Aa3(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed Aa3
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Long-term Issuer Rating,
Affirmed A1, Outlook Remains Stable
....Short-term Bank Deposit Ratings,
Affirmed P-1
....Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Remains Stable
....BACKED Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Remains Stable
....Pref. Stock Non-cumulative,
Affirmed Baa3 (hyb)
Outlook Action:
....Outlook, Remains Stable
..Issuer: Bank of Scotland Capital Funding L.P.
Affirmation:
....BACKED Pref. Stock Non-cumulative,
Affirmed Baa3 (hyb)
Outlook Action:
....No Outlook
..Issuer: HBOS Treasury Services Ltd
Affirmation:
....BACKED Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Remains Stable (assumed by Bank of Scotland
plc)
Outlook Action:
....Outlook, Remains Stable
..Issuer: HBOS Capital Funding No. 1 LP
Affirmation:
....BACKED Pref. Stock Non-cumulative,
Affirmed Baa3 (hyb)
Outlook Action:
....No Outlook
..Issuer: Halifax Ltd
Affirmation:
....BACKED Junior Subordinated Regular Bond/Debenture,
Affirmed Baa3 (hyb) (assumed by Bank of Scotland plc)
Outlook Action:
....No Outlook
..Issuer: HBOS Sterling Finance (Jersey) LP
Affirmation:
....BACKED Pref. Stock Non-cumulative,
Affirmed Baa3 (hyb)
Outlook Action:
....No Outlook
..Issuer: Leeds Permanent Building Society
Affirmation:
....BACKED Junior Subordinated Regular Bond/Debenture,
Affirmed Baa3 (hyb) (assumed by Bank of Scotland plc)
Outlook Action:
....No Outlook
..Issuer: Santander UK Group Holdings plc
Downgrades:
....Adjusted Baseline Credit Assessment,
Downgraded to baa1 from a3
....Baseline Credit Assessment, Downgraded
to baa1 from a3
Affirmations:
....Long-term Issuer Rating,
Affirmed Baa1, Outlook Changed To Stable From Negative
....Other Short Term, Affirmed (P)P-2
....Senior Unsecured Medium-Term Note
Program, Affirmed (P)Baa1
....Subordinate Medium-Term Note Program,
Affirmed (P)Baa1
....Senior Unsec. Shelf, Affirmed
(P)Baa1
....Subordinate Shelf, Affirmed (P)Baa1
....Subordinate Regular Bond/Debenture,
Affirmed Baa1
....Senior Unsecured Regular Bond/Debenture,
Affirmed Baa1, Outlook Changed To Stable From Negative
....Pref. Stock Non-cumulative,
Affirmed Ba1 (hyb)
....Pref. shelf Non-cumulative,
Affirmed (P)Ba1
Outlook Action:
....Outlook, Changed To Stable From
Negative
..Issuer: Santander UK plc
Downgrades:
....Adjusted Baseline Credit Assessment,
Downgraded to baa1 from a3
....Baseline Credit Assessment, Downgraded
to baa1 from a3
....Junior Subordinated Regular Bond/Debenture,
Downgraded to Baa3 (hyb) from Baa2 (hyb)
....Pref. Stock, Downgraded to
Baa3 (hyb) from Baa2 (hyb)
....Pref. Stock Non-cumulative,
Downgraded to Ba1 (hyb) from Baa3 (hyb)
Affirmations:
....Long-term Counterparty Risk Assessment,
Affirmed Aa3(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed Aa3
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Long-term Issuer Rating,
Affirmed A1, Outlook Remains Stable
....Short-term Bank Deposit Ratings,
Affirmed P-1
....Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Remains Stable
....Subordinate Regular Bond/Debenture,
Affirmed Baa1
....Commercial Paper, Affirmed P-1
....Senior Unsecured Medium-Term Note
Program, Affirmed (P)A1
....Other Short Term, Affirmed (P)P-1
....Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Remains Stable
....Senior Unsecured Shelf, Affirmed
(P)A1
Outlook Action:
....Outlook, Remains Stable
..Issuer: Santander Financial Services plc
Downgrades:
....Adjusted Baseline Credit Assessment,
Downgraded to baa1 from a3
....Baseline Credit Assessment, Downgraded
to baa1 from a3
Affirmations:
....Long-term Counterparty Risk Assessment,
Affirmed Aa3(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed Aa3
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Long-term Issuer Ratings,
Affirmed A1, Outlook Remains Stable
....Short-term Issuer Ratings,
Affirmed P-1
....Short-term Bank Deposit Ratings,
Affirmed P-1
....Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Remains Stable
Outlook Action:
....Outlook, Remains Stable
..Issuer: Close Brothers Group plc
Upgrades:
....Long-term Issuer Rating,
Upgraded to A2 from A3, Outlook Remains Negative
....Short-term Issuer Rating,
Upgraded to P-1 from P-2
....Senior Unsecured Medium-Term Note
Program, Upgraded to (P)A2 from (P)A3
....Senior Unsecured Regular Bond/Debenture,
Upgraded to A2 from A3, Outlook Remains Negative
Affirmation:
....Subordinate Regular Bond/Debenture,
Affirmed A3
Outlook Action:
....Outlook, Remains Negative
..Issuer: Close Brothers Finance plc
Affirmations:
....BACKED Senior Unsecured Medium-Term
Note Program, Affirmed (P)Aa3
....BACKED Other Short Term, Affirmed
(P)P-1
....BACKED Senior Unsecured Regular Bond/Debenture,
Affirmed Aa3, Outlook Remains Negative
Outlook Action:
....Outlook, Remains Negative
..Issuer: Close Brothers Limited
Affirmations:
....Adjusted Baseline Credit Assessment,
Affirmed a2
....Baseline Credit Assessment, Affirmed
a2
....Long-term Counterparty Risk Assessment,
Affirmed Aa2(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed Aa2
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Short-term Bank Deposit Ratings,
Affirmed P-1
....Long-term Bank Deposit Ratings,
Affirmed Aa3, Outlook Remains Negative
Outlook Action:
....Outlook, Remains Negative
..Issuer: Nationwide Building Society
Upgrades:
....Junior Senior Unsecured Regular Bond/Debenture,
Upgraded to Baa1 from Baa2
....Junior Senior Unsecured Medium-Term
Note Program, Upgraded to (P)Baa1 from (P)Baa2
Affirmations:
....Adjusted Baseline Credit Assessment,
Affirmed baa1
....Baseline Credit Assessment, Affirmed
baa1
....Long-term Counterparty Risk Assessment,
Affirmed Aa3(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed Aa3
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Short-term Bank Deposit Ratings,
Affirmed P-1
....Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Remains Stable
....Senior Unsecured Medium-Term Note
Program, Affirmed (P)A1
....Subordinate Medium-Term Note Program,
Affirmed (P)Baa2
....Pref. Stock Non-cumulative,
Affirmed Ba1 (hyb)
....Subordinate Regular Bond/Debenture,
Affirmed Baa2
....Commercial Paper, Affirmed P-1
....LT Deposit Note/CD Program, Affirmed
(P)A1
....ST Deposit Note/CD Program, Affirmed
(P)P-1
....Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Remains Stable
Outlook Action:
....Outlook, Remains Stable
..Issuer: Barclays PLC
Upgrades:
....Subordinate Shelf, Upgraded to (P)Baa2
from (P)Baa3
....Subordinate Regular Bond/Debenture,
Upgraded to Baa2 from Baa3
....Subordinate Medium-Term Note Program,
Upgraded to (P)Baa2 from (P)Baa3
Affirmations:
....Adjusted Baseline Credit Assessment,
Affirmed baa2
....Baseline Credit Assessment, Affirmed
baa2
....Short-term Issuer Rating,
Affirmed P-2
....Long-term Issuer Rating,
Affirmed Baa2, Outlook Remains Stable
....Other Short Term, Affirmed (P)P-2
....Senior Unsecured Medium-Term Note
Program, Affirmed (P)Baa2
....Senior Unsecured Shelf, Affirmed
(P)Baa2
....Pref. Stock Non-cumulative,
Affirmed Ba2 (hyb)
....Commercial Paper, Affirmed P-2
....Senior Unsecured Regular Bond/Debenture,
Affirmed Baa2, Outlook Remains Stable
Outlook Action:
....Outlook, Remains Stable
..Issuer: Barclays Bank PLC
Upgrades:
....Junior Subordinated Regular Bond/Debenture,
Upgraded to Baa3 (hyb) from Ba1 (hyb)
....Subordinate Regular Bond/Debenture,
Upgraded to Baa2 from Baa3
....Subordinate Medium-Term Note Program,
Upgraded to (P)Baa2 from (P)Baa3
Affirmations:
....Long-term Issuer Rating,
Affirmed A1, Outlook Remains Stable
....Short-term Bank Deposit Ratings,
Affirmed P-1
....Senior Unsecured Medium-Term Note
Program, Affirmed (P)A1
....Other Short Term, Affirmed (P)P-1
....Other Short Term, Affirmed P-1
....Pref. Stock, Affirmed Ba1
(hyb)
....Pref. Stock Non-cumulative,
Affirmed Ba2 (hyb)
....Commercial Paper, Affirmed P-1
....BACKED Commercial Paper, Affirmed
P-1
....LT Deposit Note/CD Program, Affirmed
(P)A1
....Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Remains Stable
....Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Remains Stable
...Adjusted Baseline Credit Assessment, Affirmed
baa2
...Baseline Credit Assessment, Affirmed baa3
....Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
...Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed A1
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Senior Unsec. Shelf, Affirmed
(P)A1
Outlook Action:
....Outlook, Remains Stable
..Issuer: Barclays Bank PLC, Australia Branch
Affirmations:
....Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed A1
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Commercial Paper, Affirmed P-1
Outlook Action:
....Outlook, Remains Stable
..Issuer: Barclays Bank PLC, Cayman Branch
Affirmation:
....Commercial Paper, Affirmed P-1
Outlook Action:
....No Outlook
..Issuer: Barclays Bank PLC, Hong Kong Branch
Affirmations:
....Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed A1
....Short-term Counterparty Risk Ratings
Affirmed P-1
Outlook Action:
....No Outlook
..Issuer: Barclays Bank PLC, New York Branch
Affirmations:
....Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed A1
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Commercial Paper, Affirmed P-1
Outlook Action:
....Outlook, Remains Stable
..Issuer: Barclays Bank PLC, Paris Branch
Affirmations:
....Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed A1
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Short-term Bank Deposit Ratings,
Affirmed P-1
....Senior Unsecured Medium-Term Note
Program, Affirmed (P)A1
....Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Remains Stable
Outlook Action:
....Outlook, Remains Stable
..Issuer: Barclays Bank PLC, Singapore Branch
Affirmations:
....Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed A1
....Short-term Counterparty Risk Ratings,
Affirmed P-1
Outlook Action:
....No Outlook
..Issuer: Barclays Bank PLC, Tokyo Branch
Affirmations:
....Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed A1
....Short-term Counterparty Risk Ratings,
Affirmed P-1
Outlook Action:
....No Outlook
..Issuer: Barclays Bank of Canada
Affirmations:
....BACKED Commercial Paper, Affirmed
P-1
....Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
Outlook Action:
....No Outlook
..Issuer: Barclays Capital (Cayman) Limited
Affirmations:
....BACKED Senior Unsecured Medium-Term
Note Program, Affirmed (P)A1
....BACKED Other Short Term, Affirmed
(P)P-1
Upgrade:
....BACKED Subordinate Medium-Term
Note Program, Upgraded to (P)Baa2 from (P)Baa3
Outlook Action:
....Outlook, Remains Stable
..Issuer: Barclays Financial LLC
Affirmations:
....BACKED Senior Unsecured Medium-Term
Note Program, Affirmed (P)A1
....BACKED Other Short Term, Affirmed
(P)P-1
Outlook Action:
....Outlook, Remains Stable
..Issuer: Barclays Overseas Investment Company B.V.
Upgrade:
....BACKED Junior Subordinated Regular Bond/Debenture,
Upgraded to Baa3 (hyb) from Ba1 (hyb)
Outlook Action:
....Outlook, Remains Stable
..Issuer: Barclays US CCP Funding LLC
Affirmation:
....Commercial Paper, Affirmed P-1
Outlook Action:
....No Outlook
..Issuer: Woolwich plc
Upgrades:
....BACKED Junior Subordinated Regular Bond/Debenture,
Upgraded to Baa3 (hyb) from Ba1 (hyb) (assumed by Barclays Bank PLC)
....BACKED Subordinate Regular Bond/Debenture,
Upgraded to Baa2 from Baa3 (assumed by Barclays Bank PLC)
Outlook Action:
....Outlook, Remains Stable
..Issuer: Barclays Bank UK PLC
Affirmation:
....Adjusted Baseline Credit Assessment,
Affirmed a3
....Baseline Credit Assessment, Affirmed
a3
....Long-term Counterparty Risk Assessment,
Affirmed Aa3(cr)
....Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
....Long-term Counterparty Risk Ratings,
Affirmed Aa3
....Short-term Counterparty Risk Ratings,
Affirmed P-1
....Short-term Bank Deposit Ratings,
Affirmed P-1
....Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Changed to Stable From Negative
....Commercial Paper, Affirmed P-1
Outlook Action:
....Outlook, Changed To Stable From
Negative
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Banks Methodology
published in July 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1269625.
Alternatively, please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and
sensitivity analysis, see the sections Methodology Assumptions and
Sensitivity to Assumptions in the disclosure form. Moody's
Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.
For ratings issued on a program, series, category/class of
debt or security this announcement provides certain regulatory disclosures
in relation to each rating of a subsequently issued bond or note of the
same series, category/class of debt, security or pursuant
to a program for which the ratings are derived exclusively from existing
ratings in accordance with Moody's rating practices. For ratings
issued on a support provider, this announcement provides certain
regulatory disclosures in relation to the credit rating action on the
support provider and in relation to each particular credit rating action
for securities that derive their credit ratings from the support provider's
credit rating. For provisional ratings, this announcement
provides certain regulatory disclosures in relation to the provisional
rating assigned, and in relation to a definitive rating that may
be assigned subsequent to the final issuance of the debt, in each
case where the transaction structure and terms have not changed prior
to the assignment of the definitive rating in a manner that would have
affected the rating. For further information please see the ratings
tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The ratings have been disclosed to the rated entity or its designated
agent(s) and issued with no amendment resulting from that disclosure.
These ratings are solicited. Please refer to Moody's Policy
for Designating and Assigning Unsolicited Credit Ratings available on
its website www.moodys.com.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Moody's general principles for assessing environmental, social
and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288435.
The Global Scale Credit Rating on this Credit Rating Announcement was
issued by one of Moody's affiliates outside the EU and is endorsed
by Moody's Deutschland GmbH, An der Welle 5, Frankfurt
am Main 60322, Germany, in accordance with Art.4 paragraph
3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies.
Further information on the EU endorsement status and on the Moody's
office that issued the credit rating is available on www.moodys.com.
The person who approved Close Brothers Group plc, Close Brothers
Finance plc, Close Brothers Limited, Nationwide Building Society,
Santander UK Group Holdings plc, Santander UK plc, Santander
Financial Services plc, Lloyds Bank Corporate Markets plc,
Lloyds Bank Corporate Markets plc, NY Branch, Lloyds Bank
plc, Cheltenham & Gloucester plc, HBOS plc, Bank
of Scotland plc, Bank of Scotland Capital Funding L.P.,
HBOS Treasury Services Ltd, HBOS Capital Funding No. 1 LP,
Halifax Ltd, HBOS Sterling Finance (Jersey) LP, Leeds Permanent
Building Society, Lloyds Banking Group plc credit ratings is Laurie
Mayers, Associate Managing Director, Financial Institutions
Group, JOURNALISTS: 44 20 7772 5456, Client Service:
44 20 7772 5454. The person who approved Barclays PLC, Barclays
Bank PLC, Barclays Bank PLC, Australia Branch, Barclays
Bank PLC, Cayman Branch, Barclays Bank PLC, Hong Kong
Branch, Barclays Bank PLC, New York Branch, Barclays
Bank PLC, Paris Branch, Barclays Bank PLC, Singapore
Branch, Barclays Bank PLC, Tokyo Branch, Barclays Bank
of Canada, Barclays Capital (Cayman) Limited, Barclays Financial
LLC, Barclays Overseas Investment Company B.V.,
Barclays US CCP Funding LLC, Woolwich plc, Barclays Bank UK
PLC credit ratings is Ana Arsov, MD-Financial Institutions,
Financial Institutions Group, JOURNALISTS: 44 20 7772 5456,
Client Service: 44 20 7772 5454.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Alessandro Roccati
Senior Vice President
Financial Institutions Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Laurie Mayers
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
