Diversified universal bank with strong franchises in core markets. Good progress to date against balance sheet restructuring targets. Adequate capital position following significant equity injections in 2008–2009 by the U.K. government, which remains the majority shareholder. Execution risk in completing the repositioning of the bank's business model and performance due to generally unfavorable economic conditions in the bank's core markets. Elevated, although declining, losses on noncore assets. Nonrecurring charges continue to drag on capital generation through earnings. Standard&Poor's Ratings Services' outlook on U.K.-based Royal Bank of Scotland PLC (RBS) is stable. The stable outlook reflects our view that RBS will likely continue to improve its capital position, manage down noncore assets, and de-risk the franchise. We base our
