We believe that Nationwide Building Society's overall loss experience is no longer materially superior to peers and that its balance sheet leverage is high. We expect high impairment charges in its commercial real estate loan book to persist for the next two years. We are therefore lowering our long-term counterparty credit rating on Nationwide to 'A' from 'A+'. At the same time, we are affirming the short-term rating at 'A-1'. The negative outlook is consistent with the negative trend that we have assigned to U.K. banking industry risk. On Aug. 16, 2013, Standard&Poor's Ratings Services lowered its long-term counterparty credit rating on Nationwide Building Society to 'A' from 'A+'. At the same time, we affirmed the 'A-1' short-term
