The ratings on Barclays Bank PLC reflect its good income levels, satisfactory capital adequacy, and strong U.K. market position. Profitability is good on an international basis, although correlated with U.K. economic performance. Management actions in the late 1990s have positioned Barclays to be better able to manage the impact of the current global downturn. Barclays' alliance with Legal&General Group PLC (AA/Negative/A-1+) gives it life assurance products to distribute, with less balance-sheet exposure than that which occurs with ownership of a life company, and is in line with its strategy to strengthen its position in key U.K. financial services segments where it has been underweight (mortgages and long-term savings). The 2000 acquisition of Woolwich PLC (AA/Stable/A-1+) addressed the mortgage
