The Royal Bank of Scotland Group PLC (RBSG) today announced the revised terms of its participation in the U.K. government asset protection scheme (GAPS) and the outcome of the European Commission's state aid ruling. As a result, we are affirming the counterparty credit ratings on RBSG and related entities. We are lowering the ratings on hybrid capital instruments with fully discretionary coupons issued by RBSG and related entities to 'CC'. We are placing the other hybrid issues on CreditWatch with developing implications pending confirmation of whether future coupons are likely to be paid. We are placing deferrable Lower Tier 2 issues on CreditWatch with negative implications. The stable outlook on RBSG reflects both our expectation that the U.K. government will
