Strong position in the U.K. savings and mortgages market, and an improving market position in current accounts. Logical, organic strategy to rebalance the business mix and become a full-service retail and commercial business bank. Satisfactory funding, liquidity, and capital. Lower business diversification than its larger U.K. competitors. Concentrated exposure to the leveraged U.K. household sector. A lower-rated parent, despite a recent upgrade and stable outlook. The negative outlook on U.K.-based bank Santander UK PLC (SanUK) reflects the possibility that Standard&Poor's Ratings Services will lower the long-term rating on SanUK by up to two notches by year-end 2015 if we consider that extraordinary government support is less predictable under the new Bank Recovery and Resolution Directive in the EU.
