Standard&Poor's said today that the announcement by Abbey National PLC (AA-/Stable/A-1+) that its chief executive officer (CEO) Ian Harley is stepping down with effect from today will not in itself affect the ratings on the bank or on life assurance subsidiary Scottish Mutual Assurance PLC (A/Negative/--; the ratings on Scottish Mutual reflect support from Abbey National). Lord Burns, the chairman, will act as executive chairman until a new CEO is appointed. Mr. Harley's departure follows the recent weakening of financial performance and reflects the strategic challenges that the Abbey National group faces in a tougher competitive and economic environment. These issues, allied with the pressure to enhance shareholder returns and the weakening of core capitalization, contributed to Standard
