Lloyds TSB Ratings Unaffected By Announced Results For First-Half 2008 Jul 08

Standard & Poors, July 2008

Abstract
LONDON (Standard & Poor's) July 30, 2008--Standard & Poor's Ratings Services said today that its ratings and outlooks on Lloyds TSB Group PLC (LTSB; AA-/Stable/A-1+) and Lloyds TSB Bank PLC (AA/Stable/A-1+) were unchanged following the announcement of results for the first half of 2008. Statutory earnings were weaker than expected at just £599 million before tax, compared to £2 billion for the first half of 2007. This largely reflects considerable accounting volatility in the life insurance unit (Scottish Widows PLC (AA-/Positive/--)) as the performance of the equity and bond markets diverged markedly from long run rates of return. These items, including policyholder tax provisions, which have no impact on net earnings, reduced pretax profit by £794 million. On top of...

Companies mentioned in this report are:
- Lloyds Banking Group PLC
- Lloyds TSB Bank PLC
- Scottish Widows PLC

Action: General Comment

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

- Lloyds Banking Group PLC
- Lloyds TSB Bank PLC
- Scottish Widows PLC

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