On Nov. 25, 2002, Standard&Poor's Ratings Services revised its outlook on U.K.-based bank Abbey National PLC (Abbey) and related entities to negative from stable. At the same time, it affirmed its 'AA-/A-1+' counterparty credit ratings on Abbey and related entities. In addition, the long-term counterparty credit rating on Abbey's subsidiary, Scottish Mutual Assurance PLC (SMA), was lowered to 'A-' from 'A' (see related press release titled "U.K.-Based Scottish Mutual Assurance PLC Ratings Lowered to 'A-'; Outlook Negative", published today on RatingsDirect, Standard&Poor's Web-based credit analysis system). The outlook on SMA is negative. The outlook revision reflects the continuing pressure on group capital flexibility because of market volatility and the capitalization of its life assurance operations. The
