This report does not constitute a rating action. The issuer credit rating applies to core operating subsidiaries including Lloyds Bank PLC. Lloyds Banking Group PLC is the group nonoperating holding company rated one notch below the Group SACP. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Market-leading U.K. retail banking franchise. Muted macroeconomic conditions in the U.K. could dampen balance sheet growth and squeeze borrowers? credit quality. Strong capitalization, solid earnings and financial flexibility. Supportive funding and liquidity profiles. Lloyds' solid strategic position stems from its market-leading franchise in the U.K. It has a dominant mortgage business and strong market share across credit cards, unsecured lending, and commercial banking.
