Strong position in the U.K. savings and mortgages market. Solid funding, liquidity, and capital. Logical, organic strategy to rebalance the business mix and become a full service retail and commercial business bank. Lower business diversification than its larger U.K. competitors. Residual risk of potential contagion from the wider Santander group. Concentrated exposure to the leveraged U.K. household sector. Standard&Poor's Ratings Services' negative outlook on Santander UK PLC (SanUK) reflects two issues: The negative "trend" that we have assigned to U.K. banking industry risk; and The possibility of a negative rating action if, in our view, the weakening credit profile of Banco Santander S.A. ("Banco Santander" or "the parent") jeopardizes SanUK's funding prospects or poses a significant threat to
