Position as a "core" subsidiary of Banco Santander. Strong market position in U.K. savings and mortgages. Useful mix of retail and commercial business lines. Disciplined risk appetite. Lower business diversification than its larger U.K. bank competitors. Only moderate capitalization, according to our methodology. RBS acquisition brings integration risk in the medium term. Profitability set to moderately reduce through 2012. Standard&Poor's Ratings Services' outlook on Santander UK PLC (SanUK) is negative, matching that on our ratings on its ultimate parent, Banco Santander S.A. (Santander, A+/Negative/A-1). Any positive or negative movement in our ratings on Santander would lead to the same movement in the ratings on SanUK. A downward movement in our ratings on SanUK could also result from a
