The ratings on U.K.-based Nationwide Building Society reflect its position as the largest U.K. building society and one of the leading providers of domestic retail financial services. It ranks third by market share in both retail saving deposits and residential mortgages. As such, Standard&Poor's Ratings Services regards Nationwide as a highly systemically important institution in the U.K. We consider that it is unlikely to require extraordinary external support, but believe that the U.K. government would provide it if required. We have therefore included one notch of support in our long-term counterparty credit rating. The ratings are partially offset, however, by margin pressure and relatively elevated impairment losses in the current economic environment. Nationwide's activities are overwhelmingly focused on
