Strong U.K. residential mortgage and retail savings franchises, with a growing market position in personal current accounts. Lending is focused on prime, well-collateralized mortgages. Strong capitalization and growing loss-absorbing capacity. Concentrated exposure to the leveraged U.K. household sector. Risk of a weaker economic environment as the U.K. moves to exit the EU (Brexit). Lower business diversification than some universal bank competitors. The positive outlook on U.K.-based Nationwide Building Society (Nationwide) reflects that we could incorporate an additional notch of additional loss-absorbing capacity (ALAC) support and therefore raise our ratings on Nationwide 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
