The ratings on Lloyds TSB Bank PLC (Lloyds TSB) reflect the bank's excellent profitability, satisfactory capitalization, and the strength of its franchise in U.K. retail banking and other financial services. Lloyds TSB--which includes the operations of the former Lloyds Bank and TSB Group PLC, Cheltenham&Gloucester PLC (C&G), and Scottish Widows' Fund&Life Assurance Society (now Scottish Widows PLC)--is the third-largest retail financial services group and residential mortgage lender in the U.K. and a leading player in the U.K. life and pensions market. Lloyds TSB announced the terms of a proposal for the acquisition of Abbey National PLC (Abbey National: AA/Watch Neg/A-1+) on Jan. 31, 2001. The bid is conditional and the potential acquisition may not take place.
