The ratings on Barclays Bank PLC reflect its good income levels, satisfactory capital adequacy, and strong U.K. market position. Profitability is strong 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. Standard&Poor's expects Barclays' income streams to remain good in absolute terms. Increased price competition in U.K. financial services restrains earnings growth, even though Barclays does not compete solely on price across its entire portfolio. Continuing efforts to reduce exposure to more volatile sectors, and improvements in risk management procedures, help dampen the impact of a weaker economy on the balance sheet. International exposures are
