Bulletin: Royal Bank of Scotland Ratings Unaffected By Accelerated Pension Contributions

LONDON (S&P Global Ratings) April 17, 2018--S&P Global Ratings said today that its ratings and outlook on The Royal Bank of Scotland Group PLC (RBSG; BBB-/Stable/A-3) and its subsidiaries are unaffected by today's announcement that the group will accelerate contributions to its group pension fund. RBSG announced today that it has entered into a memorandum of understanding (MoU) with the trustee of the main scheme of the RBS Group Pension Fund, which includes accelerated funding contributions from RBSG to the main scheme. In the second half of 2018, RBSG will make a £2 billion pretax payment. It stated that the pro forma effect of this would be to reduce the group's end-December 2017 Common Equity Tier 1 (CET1) ratio by

...LONDON (S&P Global Ratings) April 17, 2018--S&P Global Ratings said today that its ratings and outlook on The Royal Bank of Scotland Group PLC (RBSG; ###-/Stable/A-3) and its subsidiaries are unaffected by today's announcement that the group will accelerate contributions to its group pension fund. RBSG announced today that it has entered into a memorandum of understanding (MoU) with the trustee of the main scheme of the RBS Group Pension Fund, which includes accelerated funding contributions from RBSG to the main scheme. In the second half of 2018, RBSG will make a ú2 billion pretax payment. It stated that the pro forma effect of this would be to reduce the group's end-December 2017 Common Equity Tier 1 (CET1) ratio by 80 basis points. From January 2020, RBSG will make further pretax contributions, up to an aggregate amount of ú1.5 billion, contingent on future shareholder distributions and capped at ú500 million per year. The accelerated contributions set out in the MoU would not substantially...

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