RBSG notes credit ratings downgrade by S&P

RNS Number : 4798S

Royal Bank of Scotland Group PLC

07 November 2013

 



RBS Group notes credit ratings downgrade by S&P

The Royal Bank of Scotland Group plc (the Group) notes the decision by Standard & Poor's Rating Services (S&P) to downgrade certain of the Group and its core subsidiaries' long-term and short-term credit ratings by one notch.  The subsidiaries impacted are The Royal Bank of Scotland plc, The Royal Bank of Scotland N.V. and National Westminster Bank Plc.  The downgrade reflects the fact that a transitional notch, called a 'positive transition notch', that was built into our ratings in late 2011 in recognition of the progress the Group had made in its restructuring has now been removed.  The Group's recent announcement to create an internal bad bank, coupled with S&P's concerns on execution risk, litigation risk and the potential for conduct related fines has resulted in the removal of this transition notch.  We are not expecting this downgrade to have a material adverse impact on the liquidity of the Group.

Given the neutral stance of the other agencies, we are disappointed with S&P's decision to downgrade our ratings.

Notes:

- The Royal Bank of Scotland Group plc long term rating has been downgraded from A- to BBB+ and short term rating affirmed at A-2

- The Royal Bank of Scotland plc long term rating has been downgraded from A to A- and short term rating from A-1 to  A-2

- The Royal Bank of Scotland N.V. long term rating has been downgraded from A to A- and short term rating from A-1 to A-2

- National Westminster Bank Plc long term rating has been downgraded from A to A- and short term rating from A-1 to  A-2

For further information contact:

RBS Group Investor Relations 
Greg Case, Head of Debt Investor Relations
[phone]

 

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