Standard&Poor's lowered its long-term counterparty credit ratings on Abbey National PLC (Abbey) and various Abbey subsidiaries--including Abbey National Life PLC--to double-'A'-minus from double-'A' on June 12, 2002. At the same time, the long-term counterparty credit ratings on Scottish Provident Ltd. and Scottish Mutual Assurance PLC were lowered to single-'A', from single-'A'-plus and double-'A'-minus, respectively. The rating actions reflect Standard&Poor's view of Abbey's weakening core capitalization, adjusting capital for insurance risks and securitizations, and continued heightened competition in its key markets. In addition, Standard&Poor's revised its outlook on Abbey and Abbey National Life to stable from negative. The outlook on Scottish Mutual Assurance PLC remains negative. The 'A-1'-plus short-term counterparty credit rating on Abbey has
