On June 19, 2008, Standard&Poor's Ratings Services affirmed its 'AA-/A-1+' long- and short-term counterparty credit ratings on The Royal Bank of Scotland Group PLC (RBSG), following a review of major U.K. banks. The outlook remains negative. The ratings on The Royal Bank of Scotland Group PLC (RBSG)--the ultimate holding company of The Royal Bank of Scotland PLC (RBS; AA/Negative/A-1+)--reflect its very strong business profile, broad diversification, and strong earnings capacity. We consider that RBSG's recent change in its capital policy marginally outweighs the negative ratings impact of its misjudged transaction for ABN AMRO Bank N.V. (AA-/Developing/A-1+) and material credit market-related write-downs. RBSG is one of the world's largest universal banks and enjoys a prominent position in both global
