Lloyds TSB Bank PLC (Lloyds) has recently announced a further £1 billion provision in relation to payment protection insurance (PPI), bringing the cumulative provision over the past two years to about £5.3 billion. This charge, together with other exceptional items, negatively affects our assessment of Lloyds' capital and earnings. As a result, we are less likely to revise this assessment to "adequate" from "moderate" over the next 12 months. We are therefore revising our outlook on the long-term rating on Lloyds to negative from stable. We are also affirming our 'A/A-1' ratings on Lloyds. LONDON (Standard&Poor's) Nov. 8, 2012--Standard&Poor's Ratings Services said today that it revised its outlook on Lloyds TSB Bank PLC (Lloyds) to negative
