The ratings on Barclays Bank PLC reflect its good income levels, strengthened risk management, 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 have positioned Barclays well to provide a resilient performance during more difficult economic conditions, and income should remain good in absolute terms. Increased competition in U.K. financial services restrains earnings growth, even though Barclays does not compete solely on price across its entire portfolio, but the earnings base is increasingly diversified. Barclays is growing several global business lines, such as asset management, Barclays Capital (its wholesale and investment banking division), and credit cards. Much of this growth is organic
