We believe that Lloyds Bank has taken significant steps to improve its capitalization, by our measures. We consider that the completion of the multiyear transformation of Lloyds' financial profile is now within sight and that the bank's performance should become more predictable and increasingly profitable. We have therefore revised upward our assessment of Lloyds' stand-alone credit profile to 'bbb+' from 'bbb'. We are affirming the long-term rating at 'A', because our assessment already incorporated our expectation of Lloyds' progress in improving its financial profile. We are also raising our ratings on Lloyds' various dated subordinated and junior subordinated notes by one notch. The outlook remains negative, reflecting the negative trend that we have identified for U.K. banking industry risk. LONDON
