Strongly performing prime residential mortgages represent 75% of the net loan book. Strong U.K. deposit and mortgage franchises, with an improving market position in personal current accounts. Strong capitalization, with predictable internal capital generation. Concentrated exposure to the leveraged U.K. household sector and housing market. Fairly brisk mortgage credit growth. The positive outlook on U.K.-based Nationwide Building Society (Nationwide) reflects the one-in-three chance that we could incorporate an additional notch of additional loss-absorbing capacity (ALAC) support and therefore raise its ratings to 'A+' over the coming 18-24 months. More specifically, we could raise the ratings on Nationwide if its ALAC buffer improved sustainably beyond 8% of our measure of risk-weighted assets (RWAs), such that we were confident it would merit
