The ratings on Barclays Bank PLC reflect its high income levels, satisfactory capital adequacy, and good U.K. market position. Profitability is strong on an international basis, although it has historically moved in line with U.K. economic performance. Recent rebounds in profitability have been due to management actions as well as favorable economic conditions, which should leave Barclays better able to manage the impact of the current global downturn. Barclays' alliance with Legal&General Group PLC (AA/Stable/A-1+) provides good flexibility and is in line with Barclays' strategy to strengthen its position in key segments of the U.K. financial services market where it has been underweight (mortgages and long-term savings). The October 2000 acquisition of Woolwich PLC (AA/Stable/A-1+) addressed the mortgage
