Following a review of Nationwide Building Society under Standard&Poor's revised bank criteria (published on Nov. 9, 2011), we have revised the outlook to stable from negative. We also affirmed the counterparty credit ratings at 'A+/A-1'. Our ratings on Nationwide reflect its 'bbb+' anchor, adequate business position, adequate capital and earnings, strong risk position, average funding, and adequate liquidity. They also reflect its high systemic importance in the U.K. The ratings on Nationwide's dated subordinated debt and perpetual subordinated debt were affirmed at 'BBB+' and 'BBB', respectively. The stable outlook reflects our base-case view that Nationwide's good quality residential mortgage portfolio will continue to support its risk profile, its risk-adjusted capital ratio will steadily rise, and its funding and
