The ratings on U.K. bank holding company Barclays PLC reflect Standard&Poor's Ratings Services' opinion of its strong and reasonably diversified franchise, relatively resilient earnings performance, and solid funding base. The ratings are constrained, in our view, by the relative earnings volatility and confidence sensitivity of Barclays' extensive investment banking activities, risks inherent in its substantial loan portfolios, and the potential for further losses from its legacy credit market exposures. We additionally regard Barclays' current core capital position as average relative to peers', and a relative weakness for its rating level. We consider that Barclays has a strong and reasonably diverse franchise by business line and geography. Unlike several purer investment banks, this diversity enabled Barclays to remain profitable
