The Royal Bank of Scotland Group (RBSG) continues to improve its capitalization. We believe this has the potential to become a sustainable credit strength. We are therefore revising the outlook on RBSG to positive from stable. We are affirming the long- and short-term counterparty credit ratings at 'BBB-/A-3'. We could raise the ratings if we gain sufficient confidence that RBSG will be able to maintain capitalization as a credit strength, by our measures--even allowing for probable large conduct and litigation charges during 2016, the possible return to shareholder distributions from 2017, and charges related to its ongoing restructuring. On Jan. 19, 2016, Standard&Poor's Ratings Services revised to positive from stable its outlook on U.K.-based nonoperating holding company The
