Barclays PLC

The positive outlook reflects our view that Barclays is delivering a stronger, more consistent business profile and financial performance. In particular, we think its stable strategy and management team are more effectively realizing the potential of its diversified business model. Barclays has performed resiliently through the pandemic, and we expect stronger earnings in 2021-2023 as global economies recover. We think Barclays' provision coverage is prudent and appropriately anticipates increasing charge-offs as governments withdraw fiscal support measures. We project significantly lower impairment charges in 2021 assuming economic growth strengthens in line with our base case forecasts. We also expect Barclays will maintain robust capital, funding, and liquidity profiles. We could raise the long-term issuer credit rating during our two-year outlook horizon

...Diversified business model supports the group's earnings resilience. Barclays' business portfolio combines retail and commercial banking, cards and payments, and corporate and investment banking. These units displayed partly uncorrelated revenue and loss recognition cycles through the COVID-19 pandemic and global financial crisis, which supported the group's overall performance. Its consistent management and strategy are helping Barclays to realize the potential of its business model. The positive outlook reflects our view of the stronger momentum in Barclays' franchise and creditworthiness resulting from its stable management and strategy (see "Barclays PLC Outlook Revised To Positive On Improving Business Stability And Earnings Prospects; Ratings Affirmed," published on June 24, 2021). Its performance has been resilient through the pandemic, and we expect stronger earnings in 2021-2023 as global economies recover. An upward revision of our '###+' group stand-alone credit profile (SACP)...

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