Core position in Banco Santander group. Improved market position following acquisition of Alliance&Leicester PLC. Improved track record of profitability. Relatively good asset quality. More limited scale and business diversity than larger U.K. peers. Asset quality that is challenged by the weak U.K. economic environment. Capitalization that is weaker than highly rated European peers. The ratings on Abbey National PLC (Abbey) are based on its position in the Banco Santander group (Santander; AA/Negative/A-1+), and its solid business and financial profile. Standard&Poor's Ratings Services believes that Abbey's business diversity and market position have improved following Santander's October 2008 acquisition of Alliance&Leicester PLC (A&L; AA/Negative/A-1+), but remains more limited than the top tier of U.K. banking peers.
