The ratings on Royal Bank of Scotland Group PLC (RBSG)--the ultimate holding company of The Royal Bank of Scotland PLC (RBS; AA/Stable/A-1+) and National Westminster Bank PLC (NatWest; AA/Stable/A-1+)--reflect its very strong business profile, strong risk management, and strong profitability. Capitalization is a relative weakness. With total reported assets of £839.3 billion ($1,526 billion) at June 30, 2006, RBSG is one of the world's largest universal banks. It enjoys a prominent position in U.K. financial services, which includes being the largest corporate and business bank, and has the most extensive branch network. Acquisitions have also helped forge a growing regional position in U.S. banking. Income growth prospects in its core franchises are solid. Geographic diversity continues to improve. Non-U.K. sourced
