The ratings on Abbey National PLC--which operates under the trading name "Abbey"--are supported by its position in the Banco Santander Central Hispano S.A. group (Santander; AA-/Positive/A-1+), its ongoing refocus on its core retail financial services competencies, the benefits from its cost and efficiency programs, and strong retail asset quality. Performance remains weaker than its U.K. peers, however. Abbey was acquired by Santander in 2004, and is considered by Standard&Poor's Ratings Services to be a core part of the group, given its importance to the credibility of Santander's geographic diversification strategy. Abbey's efforts to rebuild its retail franchise show encouraging early signs. Improving its retail earnings depends on the success of the changing culture within the branch network, and
