The ratings on The Royal Bank of Scotland Group PLC (RBSG)--the ultimate holding company of The Royal Bank of Scotland PLC (RBS; AA-/Stable/A-1+)--reflect a combination of extraordinary external support from the U.K. government and RBSG's own credit characteristics. On Oct. 13, 2008, Standard&Poor's Ratings Services revised its outlook on RBSG and related entities to stable from negative. This rating action followed an announcement that the U.K. government will inject up to £20 billion of capital into RBSG under the capital and liquidity package launched by the government. This massive capital increase and the related funding and liquidity measures (both for RBSG and other eligible U.K. financial institutions) are intended to rebuild confidence in the U.K. banking system. RBS
