...Im proved Risk Profile : The Royal Bank of Scotland Group plc's (RBSG) ratings reflect the group's strong capitalisation, funding and liquidity, w hich mitigate its w eaker profitability. Restructuring efforts and the resolution of legacy matters are w ell-advanced. The Viability Rating (VR) also reflects RBSG's role as a holding company and low double leverage. Capitalisation Provides Flexibility: RBSG is capitalised in excess of the targeted 14% common equity Tier 1 (CET1) ratio, and its ability to generate capital through profits has improved given reduced burden from restructuring and litigation. The excess capital provides sufficient flexibility to return capital to shareholders and absorb upcoming risk-w eighted asset (RWA) inflation and pension contributions. Strong Funding and Liquidity: The group is predominantly funded by customer deposits, w ith moderate reliance on w holesale markets. Liquidity is comfortable although, over time, the liquidity buffer and metrics are likely to...
