The ratings on Nationwide Building Society reflect the society's strong position in the U.K. mortgage market, strengthened asset quality and arrears control, better levels of operating efficiency, and good capitalization. Profitability remains satisfactory, despite the dampening effects of a strategy of rewarding members through the competitive pricing of products. This strategy reflects Nationwide's commitment to retaining its mutual status. In July 1998, Nationwide voted to remain mutual. Under the terms of that vote, another vote on the same resolution cannot be held for three years. The board, however, has decided that, as no legally valid resolution on conversion has been received, a vote on demutualization will not be held at the next annual general meeting in July 2001. Revised membership
