...RBSG's operations business is largely domestic, with the UK accounting for 85% of loans and 91% of income in 2018. The group is present in the Republic of Ireland through the county's third-largest bank, Ulster Bank DAC (UBI DAC, A-/RWN). Exposure to other European countries and the rest of the world is limited (4% of loans) and mainly arises due to wholesale customers in NatWest Markets. Our assessment of the UK operating environment incorporates the benefit of a wealthy, developed economy, but also high UK private-sector indebtedness, worsening household finances and weakening consumer confidence. The UK sovereign's `AA' Long-Term IDR is on Negative Watch, reflecting downside risks associated with a disruptive exit of the UK from the EU, which would have negative consequences for trade, investment and economic prospects in the short-to-medium term. In Fitch's view, UK banks are well-placed to weather a moderate deterioration in economic activity. However, a substantial disruption to UK...
