The ratings on Barclays Bank PLC (Barclays) reflect the bank's high income levels, good capital adequacy, and strong U.K. market position. Barclays' profitability is strong on an international basis and benefits from recent management actions. The alliance with Legal&General Group PLC (AA/Stable/A-1+), announced on Jan. 16, 2001, is in line with Barclays' stated strategy to strengthen its position in key segments of the U.K. retail financial services sector where it has been underweight (mortgages and long-term savings). Its objective is to increase the value of its large customer base. Although the October 2000 acquisition of Woolwich PLC (AA/Stable/A-1+) addressed the mortgage element, this alliance will improve Barclays' position in the long-term savings market by giving it access to
