On June 19, 2008, Standard&Poor's Ratings Services affirmed its 'AA/A-1+' long- and short-term counterparty credit ratings on Barclays Bank PLC and related entities following a review of major U.K. banks. The outlook remains negative. The ratings on Barclays reflect its broad diversification by business line and geography, very strong market positions in many of its chosen activities, powerful earnings streams, a solid funding base, and highly developed risk management framework. The ratings also reflect our expectation that capital is likely to improve from its current relatively weak position, and that capital market-related write-downs are likely to slow considerably after the first quarter of 2008. Furthermore, we expect that the impact of falling house prices and a slower economy
