Royal Bank of Scotland PLC (Royal Bank; AA-/Stable/A-1+) and National Westminster Bank PLC (NatWest; AA-/Stable/A-1+) together form the major part of the Royal Bank of Scotland banking and financial services group. The equalization of their ratings is due to the high degree of operational integration between them. Royal Bank of Scotland Group PLC (RBSG) is the holding company for these two banks. The ratings on Royal Bank and NatWest reflect the group's strong franchise, diversified product and client structure, good asset quality, superior profitability, and the success--to date--of management's acquisitional and organic growth strategy. They are tempered by the financial strain resulting from the latest acquisition--that of NatWest. The ratings on RBSG are dependent on those of its two main
