Research Update: Lloyds Banking Group 'A/A-1' Ratings Affirmed, SACP Revised Up One Notch On Improving Financial Profile; Outlook Stable Mar 11
Standard & Poors, March 2011
Abstract
In our view, Lloyds Banking Group PLC (Lloyds) has made steady progress over the past year to improve several areas of its financial profile. We are therefore revising the stand-alone credit profile (SACP) of Lloyds' core U.K. bank subsidiaries by one notch to 'a-' from 'bbb+'. At the same time, we are raising the ratings on these subsidiaries' nondeferrable subordinated debt and "must pay" perpetual subordinated capital instruments by one notch to 'BBB+' and 'BB+', respectively. We are also affirming the 'A+/A-1' counterparty credit ratings on Lloyds' core U.K. bank subsidiaries. The stable outlook reflects our expectation that Lloyds' financial profile will improve sufficiently by end-2012 to eliminate the current two-notch gap between the counterparty credit rating and the SACP....
Companies mentioned in this report are:
- Lloyds Banking Group PLC
- Bank of Scotland PLC
- Lloyds TSB Bank PLC
- Scotland International Finance No. 2 B.V.
- Halifax Group Euro Finance (Jersey) L.P.
- Halifax Group Sterling Finance (Jersey) L.P.
- Lloyds TSB Capital 2 L.P.
- Lloyds TSB Capital 1 L.P.
- Bank of Scotland Capital Funding L.P.
- HBOS PLC
- HBOS Capital Funding L.P.
- HBOS Capital Funding No. 1 L.P.
- HBOS Capital Funding No. 2 L.P.
- HBOS Capital Funding No. 3 L.P.
- HBOS Capital Funding No. 4 L.P.
- LBG Capital No. 1 PLC
- LBG Capital No. 2 PLC
Action: Affirmed
Action: Upgraded
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Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
- Lloyds Banking Group PLC
- Bank of Scotland PLC
- Lloyds TSB Bank PLC
- Scotland International Finance No. 2 B.V.
- Halifax Group Euro Finance (Jersey) L.P.
- Halifax Group Sterling Finance (Jersey) L.P.
- Lloyds TSB Capital 2 L.P.
- Lloyds TSB Capital 1 L.P.
- Bank of Scotland Capital Funding L.P.
- HBOS PLC
- HBOS Capital Funding L.P.
- HBOS Capital Funding No. 1 L.P.
- HBOS Capital Funding No. 2 L.P.
- HBOS Capital Funding No. 3 L.P.
- HBOS Capital Funding No. 4 L.P.
- LBG Capital No. 1 PLC
- LBG Capital No. 2 PLC
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