The stable outlook on Standard Chartered PLC (SC PLC) reflects our expectation that the company will broadly sustain, rather than substantially improve, its capitalization, credit losses, and asset quality over the coming one to two years. We could lower the rating if: (1) SC PLC's capitalization deteriorates, such that the group's risk-adjusted capital (RAC) ratio moves below 10% along with a sharp decline in asset quality; or (2) the group's funding or liquidity weakens. We could raise the rating if: (1) the group's asset quality sharply improves, with low credit costs; and (2) its RAC ratio improves substantially beyond our current projection of about 10%, leading us to conclude that the group's capitalization provides a substantial buffer against possible future
