OVERVIEW In our view, U.K. bank holding company The Royal Bank of Scotland Group PLC (RBS) has made good progress to date in executing its restructuring program. In our view, RBS' balance sheet is now on a sounder footing, although certain material risk concentrations remain, and its earnings maintain an improving trend. We are affirming the 'A/A-1' counterparty credit ratings on RBS and the 'A+/A-1' counterparty credit ratings on RBS' core bank subsidiaries. We are revising the stand-alone credit profile of RBS' core bank subsidiaries to 'a-' from 'bbb+'. We are raising by one notch the ratings on the dated and "must pay" perpetual subordinated capital instruments issued by RBS and its core bank subsidiaries. The stable outlook reflects our
