The ratings on Barclays Bank PLC reflect its good income levels, tight cost control, satisfactory capital adequacy, and strong U.K. market position. Profitability is robust on an international basis, although correlated with U.K. economic performance. Strategic decisions in the late 1990s positioned Barclays to be well able to provide a resilient performance during the recent global economic slowdown. 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
