Strongly performing prime residential mortgages represent 73% of the net loan book. Strong U.K. deposit and mortgage franchises, with an improving market position in personal current accounts. Internal capital generation prospects appear predictable. Concentrated exposure to the leveraged U.K. household sector. Fairly brisk mortgage credit growth. The negative outlook on Nationwide Building Society reflects the risk of a weaker operating environment following the U.K.'s decision to leave the EU. Specifically, we could revise down the anchor for U.K. banks to 'bbb' from 'bbb+' over the next two years, if prolonged uncertainty following the referendum weakens the macroeconomic outlook and economic resilience of the U.K. economy. This could, for example, manifest itself through a sharp correction in asset prices and rising
