The ratings on The Royal Bank of Scotland Group PLC (RBSG)--the ultimate holding company of The Royal Bank of Scotland PLC (RBS; A+/Stable/A-1) primarily reflect the strong support received from the U.K. government (AAA/Negative/A-1+). RBSG is currently about 70% owned by the state and its forthcoming entry into the government's Asset Protection Scheme (APS) will in our opinion further support RBSG's capitalization and provide significant insurance risk against outsized losses on over £300 billion of RBSG's assets. The ratings remain impacted by our view of reputational damage that arose in 2008 and weaknesses in RBSG's financial profile. The ratings also reflect the complicated task facing a new management team to execute a major strategic review, demonstrate improved risk management, and
