Diversified bank with strong franchises in core markets. Good progress in run-down of non-core assets. Adequate capital position following significant equity injections from the U.K. government, the majority shareholder, and substantial balance sheet deleveraging. Long-running restructuring and execution risk in completing the repositioning of the bank's business model and performance. Elevated, albeit declining, losses on internal bad bank assets. Nonrecurring charges continue to drag on capital generation through earnings. The negative outlook on U.K.-based The Royal Bank of Scotland PLC (RBS) indicates that we may lower the ratings on RBS and its core operating subsidiaries by year-end 2015 if we believe there is a greater likelihood that senior unsecured liabilities may incur losses if the bank fails. Specifically, we may
