Diversified universal bank with strong franchises in core markets. Good progress to date against restructuring targets. Adequate capital position following significant equity injections from the U.K. government, the majority shareholder. Execution risk in completing the repositioning of the bank's business model and performance. Elevated, albeit declining, losses on noncore assets. Nonrecurring charges continue to drag on capital generation through earnings. The negative outlook on U.K.-based Royal Bank of Scotland PLC (RBS) reflects the negative "trend" that we have assigned to U.K. banking industry risk. We could lower the ratings on RBS if our assessment of U.K. industry risk worsens, resulting in a lowering of the anchor for a bank operating in the U.K. to 'bbb' from 'bbb+'. We could also
