The ratings on Nationwide Building Society reflect its strong position in the U.K. mortgage market, strengthened asset quality, better levels of operating efficiency, and good capitalization. Profitability remains satisfactory, despite the dampening effects of a strategy of rewarding members through competitive pricing. This 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. Revised membership conditions introduced in 1997 mean that new members would have to waive any conversion gains in favor of a charity. Nationwide's status as the largest building society in the U.K. has enhanced its already-strong franchise. It benefits from a substantial and
