We believe the prospect of extraordinary government support for U.K. banks is now uncertain in view of the country's well-advanced and effective resolution regime. We are therefore removing the two notches of uplift that we had previously incorporated in the long-term counterparty credit rating on Nationwide for government support. However, we are including one notch in the long-term rating because we consider that Nationwide is likely to maintain its additional loss-absorbing capacity (ALAC) above our 5% threshold over our two-year projection period. Moreover, we also recognize a strengthening in the intrinsic creditworthiness of the society, caused by improved asset quality and internal capital generation, which we expect to be sustained. We are affirming the long- and short-term counterparty credit ratings
