Significantly provisioned for potential credit losses in 2021-2022. Useful market position in U.K. retail banking, with scope for further cost synergies and balanced business growth. Solid capitalization, by S&P Global Ratings' measures. Geographically concentrated in the U.K., where the economy is still affected by the pandemic. Lower revenue diversification than U.K. peers. Lacks a track record of sound statutory profitability. The negative outlook highlights that Virgin Money UK PLC (VMUK; previously named CYBG PLC) management has been pursuing closer integration and planned cost synergies since its 2018 merger with CYBG PLC. However, the weak economy, exacerbated by the U.K.'s everchanging pandemic-related physical restrictions, are forecast to moderate internal capital generation over our two-year outlook horizon. The negative outlook on Clydesdale
