We regard the planned £8.2 billion sale of Barclays' investment management subsidiary, Barclays Global Investors, to Blackrock as marginally positive overall. We see a modest benefit to capitalization, partly offset by lower future earnings, diminished earnings quality, and reduced diversification. We are affirming our 'AA-/A-1+' ratings on Barclays Bank PLC. The negative outlook reflects our view of the potential effect of the unfolding economic recession on credit quality, earnings, and capital. On June 15, 2009, Standard&Poor's Ratings Services affirmed its 'AA-/A-1+' counterparty credit ratings on Barclays Bank PLC (Barclays), following the announcement of the planned sale of its investment management subsidiary Barclays Global Investors (BGI) to Blackrock. The outlook remains negative. The affirmation reflects our view that the
