The ratings on Abbey National PLC (which operates under the trading name "Abbey") are supported by its important position in the competitive U.K. savings and residential mortgage markets, its plans to refocus on its core retail financial services competencies, buoyant retail asset quality, good liquidity, the benefits expected to accrue from its cost and efficiency programs, improved management focus and execution, and measures to reduce its risk profile. The ratings are restrained by the continued heavy burden of Abbey's restructuring, and the expectation that the upturn in core retail profits will take some time to come through. Abbey is the sixth-largest U.K. bank and the second-largest U.K. mortgage lender by outstanding stock. It announced a £686 million pretax loss in
