On Oct. 25, 2004, following a review, Standard&Poor's Ratings Services affirmed its ratings on U.K.-incorporated Lloyds TSB Bank PLC (LTSB) and related entities, including its 'AA/A-1+' long- and short-term counterparty credit ratings on LTSB. The outlook remains negative. The ratings reflect LTSB's excellent business position, strong banking returns diluted by lower-than-expected life assurance earnings, and stable asset quality. Notwithstanding LTSB's good regulatory ratios, core capitalization is weak by Standard&Poor's adjusted common equity measures when adjusted for capital held in the life business. LTSB has an extensive franchise in the U.K. retail and corporate sectors. Its banking and general insurance profitability is very strong, supported by good cost efficiency, but organic revenue growth has been lower than
