The ratings on Nationwide Building Society reflect its strong position in the U.K. mortgage and savings markets, and good asset quality. Asset growth has been brisk over the past three years, but capitalization and funding continue to compare well with peers. Underlying profitability remains satisfactory, despite the strategy of rewarding members through competitive pricing. Management is seeking to improve internal capital generation. Being the U.K.'s largest building society enhances Nationwide's franchise. Nationwide is committed to retaining its mutual status. With total reported assets of £111.6 billion ($209.8 billion) at April 4, 2005, Nationwide ranks as the seventh-largest U.K. financial services provider. Its market position is improving. Net mortgage market share has comfortably exceeded share of stock for each of the
