...Rating Outlooks Mostly Stable: Fitch Ratings has an overall stable rating outlook on UK banks, with three banks on Positive Outlook, one on Negative Outlook and one on Rating Watch Negative (RWN). The Long-Term Issuer Default Ratings (IDRs) of most UK banks reflect their standalone strength as reflected in their Viability Ratings (VRs). Three banks' VRs were upgraded during 2015. One was downgraded. Stable Sector Outlook: The stable outlook for the UK banking sector reflects the stabilisation of asset quality and better prospects for profitability, which should help strengthen capitalisation further. Risks related to the overall indebtedness of UK households and their vulnerability to rising base rates counterbalance these positive developments. The sector also faces significant costs relating to structural reform and tightening of internal governance relating to conduct. Supportive Operating Environment: Low unemployment, strong consumer confidence and prolonged low base rates should all...
