Market-leading franchise in The Netherlands. Relatively cautious strategy. Strengthened funding and liquidity profiles. Some deterioration in domestic performance owing to the difficult economic backdrop. Modest efficiency in light of sluggish growth prospects. Some management flux in recent months. Standard&Poor's Ratings Services' negative outlook on Rabobank Nederland reflects the possibility that we may view the bank's franchise stability and management, as well as its risk position, less favorably in the next 12-18 months. This reflects our opinion of the governance failure that the investigation into the setting of interbank offered rates highlighted. It also reflects some management flux in recent months, and the higher cost of risk since mid-2011 owing to the difficult economic backdrop. We consider these factors
