We believe that Barclays has made significant progress building its additional loss-absorbing capacity (ALAC). As a result, we now incorporate two notches of ALAC uplift, from one notch, into the long-term rating on Barclays Bank PLC (BB PLC), the main operating entity of the Barclays group. However, we have applied a negative adjustment to the long-term rating on BB PLC, reflecting our view of its future position as the non-ring-fenced bank within the group. We are affirming the long- and short-term counterparty credit ratings on BB PLC at 'A-/A-2' and those on the nonoperating holding company, Barclays PLC, at 'BBB/A-2'. The negative outlook on both legal entities is consistent with our negative outlook on the U.K. banking system. On May
