Strong U.K. residential mortgage and retail savings franchises, with an improving market position in adjacent products including personal current accounts. Lending focused on prime residential mortgages. Strong capitalization and additional loss-absorbing capacity. Severe economic downturn and ultra-low interest rate environment triggered by the COVID-19 pandemic. Concentrated exposure to the leveraged U.K. household sector and less diversification relative to universal bank competitors. Earnings adversely affected by industrywide elevated credit impairments, ongoing margin pressure, and Nationwide Building Society's (Nationwide's) technology investment program. The stable outlook reflects our view that Nationwide is well positioned to weather the deteriorating operating environment resulting from the COVID-19 pandemic. Although we expect asset quality and earnings will weaken in fiscal 2021 (fiscal year ends April 4), we
