On Nov. 1, 2013, following a review by HM Treasury, The Royal Bank of Scotland PLC (RBS) announced significant changes to its restructuring plan, including the creation of an internal "bad bank" to house its riskiest assets. The changes amount to a material extension of RBS' long-running restructuring, further delaying the bank's return to profitability. In addition, considerable uncertainties remain regarding RBS' exposure to future litigation and conduct risk. We are therefore lowering the long- and short-term ratings on RBS to 'A-/A-2' from 'A/A-1'. The negative outlook primarily reflects the negative trend that we see for U.K. banking industry risk. On Nov. 7, 2013, Standard&Poor's Ratings Services lowered its long- and short-term counterparty credit ratings on U.K.-based The
