The ratings on The Royal Bank of Scotland Group PLC (RBSG)--the ultimate holding company of The Royal Bank of Scotland PLC (RBS; AA/Negative/A-1+)--reflect its very strong business profile, broad diversification, and strong earnings capacity. We consider that RBSG's change in its capital policy marginally outweighs the negative ratings impact of its misjudged transaction for ABN AMRO Bank N.V. (AA-/Developing/A-1+) and material credit market related write-downs. RBSG is one of the world's largest universal banks and enjoys a prominent position in both global wholesale banking and in U.K. financial services. The business profile was further extended by the global wholesale and Asian retail businesses that RBSG acquired as part of its 2007 acquisition of ABN AMRO as the lead bank in
