Position within the diversified Santander group; Expected operational improvements should underpin retail financial services profitability; Good quality residential mortgage loan book; and Solid liquidity. Continued transformation and integration challenges; Market shares are still below historic stock shares; Core capitalization is still low; and Weak profitability compared with peers is expected to persist in 2005 as restructuring continues. The ratings on Abbey National PLC (A+/Positive/A-1)--which operates under the trading name "Abbey"--are supported by its position in the Banco Santander Central Hispano S.A. group (Santander; A+/Positive/A-1), its ongoing refocus on its core retail financial services competencies, buoyant retail asset quality, good liquidity, and expected benefits from its cost and efficiency programs. The ratings are constrained by the continued restructuring, and the expectation
