...Acquisition Supports Business Model: Coventry Building Society's (CBS) ratings reflect its stable, but undiversified, business model, prudent underwriting standards, healthy asset quality, and sound funding and liquidity profile. Fitch Ratings views the monoline business model as a constraint, given CBS's modest franchise in UK residential mortgages, limited pricing power and high reliance on net interest income. The acquisition of The Co-operative Bank p.l.c. in 2025 has broadened CBS's product offering to include current accounts, unsecured retail and SME loans. However, the combined group is still highly concentrated in the UK housing market. Group VR: CBS and The Co-operative Bank have a group Viability Rating (VR) because we believe both entities' credit profiles cannot be disentangled, and their failure risk is substantially the same. The group VR reflects the high operational and financial integration and the planned Part VII transfer of The Co-operative Bank's assets and liabilities...
