Strongly performing prime residential mortgages represent 74% of the net loan book. U.K. deposit and mortgage franchises are strong, with an improving market position in personal current accounts. Internal capital generation prospects appear predictable. Concentrated exposure to the leveraged U.K. household sector. Fairly brisk mortgage credit growth. The stable outlook on Nationwide Building Society (Nationwide) balances the at least one-in-three probability that we will revise the stand-alone credit profile (SACP) upward over the next two years with our view that, if this happens, we would remove the one notch of uplift for additional loss-absorbing capacity (ALAC). If we revised the SACP to 'a' from 'a-', this would lead us to raise the ratings on Nationwide's hybrid instruments by one notch.
