Strong position in U.K. commercial and corporate banking and leading position in U.K. retail banking. Funding and liquidity profiles compare well. Improving capitalization and asset quality. Long-running restructuring and execution risk in completing the repositioning of the bank's business model and performance. Conduct and litigation charges likely to remain a drag on earnings prospects, and reputation, this year and next. A still relatively large stock of nonperforming assets to be worked through. The stable outlook on U.K.-based The Royal Bank of Scotland PLC (RBS), the main operating entity of the RBS group, reflects our expectation that RBS will make significant progress, this year and next, working through the key milestones of its strategy, including its plan to exit about one-half
