Highly strategic subsidiary of The Royal Bank of Scotland Group plc. Solid capital ratios. Concentration in capital markets activities, which have inherent cyclicality and complexity. Poor profitability and cost efficiency relative to peers. S&P Global Ratings' stable outlook on NatWest Markets Plc (NWM) mirrors that on parent The Royal Bank of Scotland Group plc (RBSG). It reflects our expectation that RBSG will maintain robust balance sheet metrics and strengthen its earnings toward management's targets. Having raised the ratings on RBSG and NWM in May 2019, we are unlikely to consider a further upgrade in the near term. However, an upgrade is possible during our two-year outlook horizon if we gain more visibility on the U.K. economy following Brexit, and RBSG
