On Feb. 26, 2004, Standard&Poor's Ratings Services lowered its long- and short-term ratings on Abbey National PLC (Abbey) and related entities to 'A+/A-1' from 'AA-/A-1+', including its counterparty credit ratings on Abbey and its long-term counterparty credit and insurer financial strength ratings on Abbey National Life PLC. The downgrade on the short-term ratings is in line with that on the long-term ratings. The outlook on all entities is stable. At the same time, Standard&Poor's affirmed its 'BBB+' counterparty credit and insurer financial strength ratings on Scottish Mutual Assurance PLC and Scottish Provident Ltd., which continue to benefit from Abbey's support. The downgrade reflects the continued heavy burden of Abbey's restructuring on its balance sheet, and the
