The ratings on U.K.-based Barclays Bank PLC (Barclays) reflect its strong earnings and returns, good market positions, increased diversification, solid funding base, and highly developed risk-management framework. The ratings also reflect its relatively tight capital management, the potential increase in earnings volatility created by its expanded investment bank, its significant exposure to U.K. unsecured credit quality, as well as its large defined-benefit pension scheme and associated IAS 19 deficit. Barclays has a range of high-return businesses across multiple product lines, including retail banking and business banking in the U.K. and abroad, investment banking, and asset management. Growth has generally been strong, with the notable exception of the U.K. retail bank, where weaker growth is being addressed by management initiatives. Diversification,
