On Nov. 25, 2002, Standard&Poor's Ratings Services affirmed its 'AA/A-1+' counterparty credit ratings on U.K.-based financial services group Lloyds TSB Bank PLC. At the same time, Standard&Poor's revised its outlook on Lloyds TSB Bank and related entities to negative from stable. The negative outlook reflects Lloyds TSB Bank's reduced core capital flexibility, which has been caused by the impact of equity market weakness on its life assurance subsidiary, Scottish Widows PLC (Widows; not rated). The group's life assurance operations form a significant part of the group. The ratings on Lloyds TSB Bank (Lloyds TSB) reflect its strong profitability, good asset quality, and the strength of its franchise in U.K. financial services. Lloyds TSB--which includes Cheltenham&
