Bulletin: Santander UK Group Ratings Not Affected By Upgrade Of Spanish Parent Banco Santander

LONDON (S&P Global Ratings) April 9, 2018--S&P Global Ratings said today that its ratings and outlook on Santander UK Group Holdings PLC (Santander UK Group; BBB/Stable/A-2) and Santander UK PLC (A/Stable/A-1) are not affected by the upgrade of parent Banco Santander S.A. to 'A/A-1' from 'A-/A-2' on April 6, 2018. Based on Banco Santander's multiple point of entry resolution strategy, our ratings on bank subsidiary Santander UK PLC reflect our view of the U.K. subgroup's stand-alone creditworthiness, plus uplift for additional loss-absorbing capacity (ALAC). The long-term issuer credit rating on Santander UK PLC includes two notches of ALAC uplift because we expect the U.K. subgroup's buffer of bail-in-able debt instruments will remain above 8% of S&P Global Ratings' risk-weighted assets.

...LONDON (S&P Global Ratings) April 9, 2018--S&P Global Ratings said today that its ratings and outlook on Santander UK Group Holdings PLC (Santander UK Group; ###/Stable/A-2) and Santander UK PLC (A/Stable/A-1) are not affected by the upgrade of parent Banco Santander S.A. to 'A/A-1' from 'A-/A-2' on April 6, 2018. Based on Banco Santander's multiple point of entry resolution strategy, our ratings on bank subsidiary Santander UK PLC reflect our view of the U.K. subgroup's stand-alone creditworthiness, plus uplift for additional loss-absorbing capacity (ALAC). The long-term issuer credit rating on Santander UK PLC includes two notches of ALAC uplift because we expect the U.K. subgroup's buffer of bail-in-able debt instruments will remain above 8% of S&P Global Ratings' risk-weighted assets. Since Santander UK PLC is subject to a separate resolution process, we believe that it could continue operating without defaulting on senior obligations in the event of a resolution of the parent, and...

Bulletin