Leading franchise in U.K. retail banking and strong positions in U.K. commercial and corporate banking, and insurance. Solid capitalization. Supportive funding and liquidity profiles. Market volatility and expected weaker economic conditions following U.K. vote to exit the EU. Still rebuilding statutory profitability, although earnings drag from nonrecurring items is declining. The negative outlook reflects the negative trend we see for economic risk in the U.K. and our view that Lloyds' creditworthiness could weaken if its operating environment weakens. Nevertheless, our ratings reflect our view that Lloyds' statutory profitability will further improve through end-2018, that it will maintain an S&P Global Ratings risk-adjusted capital (RAC) ratio of about 8.0%-8.5%, asset growth will be moderate with no significant step-up in risk appetite,
