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 (ALAC). Severe economic downturn and ultra-low interest rates amid the COVID-19 pandemic. Concentrated exposure to the leveraged U.K. household sector and less diversification relative to that of universal bank competitors. Earnings adversely affected by industrywide elevated credit impairments, ongoing margin pressure, and Nationwide Building Society's technology investment program. The stable outlook reflects S&P Global Ratings' view that Nationwide is well positioned to weather the uncertain operating environment resulting from the COVID-19 pandemic. Although we expect actual default rates to increase in fiscal 2021, we think its credit strengths
