The ratings on Abbey National PLC (which operates under the trading name "Abbey") are supported by its U.K. savings and residential mortgage market positions, its ongoing refocus on its core retail financial services competencies, buoyant retail asset quality, good liquidity, expected benefits from its cost and efficiency programs, and measures to reduce its risk profile. The ratings are restrained by the continued restructuring burden, and the expectation that the upturn in core retail profits will take some time to come through. On July 26, 2004, Banco Santander Central Hispano S.A. (Santander; A+/Stable/A-1) and Abbey announced that they had reached an agreement on the terms of a recommended acquisition by Santander of Abbey. The transaction is subject to regulatory and shareholder
