Major franchise in the U.K. and northeast USA; Good business diversification and strategic flexibility; Successful acquisition and integration strategy; and Superior profitability and efficiency. Capital managed more tightly than at peers; and Acquisition-oriented strategy carries a degree of execution risk. The ratings on Royal Bank of Scotland Group PLC (RBSG), the ultimate holding company of Royal Bank of Scotland PLC (Royal Bank; AA/Stable/A-1+) and National Westminster Bank PLC (NatWest; AA/Stable/A-1+), in part reflect the strong business positions achieved as a result of the group's acquisition strategy, enacted mainly in the U.S. and U.K. Acquisitions in the U.K. have been dominated by the takeover of NatWest in 2000, and its successful three-year integration into the group. RBSG now enjoys a prominent
