Royal Bank of Scotland : RBS notes credit rating actions by Standard&Poor's

RBS notes credit rating actions by Standard & Poor's

The Royal Bank of Scotland Group plc

31 May 2018

The Royal Bank of Scotland Group plc ('RBS') notes the decision by the credit rating agency Standard & Poor's ('S&P') to amend a number of ratings across the group, including to:

- Upgrade the long-term ratings of National Westminster Bank Plc (NatWest), The Royal Bank of Scotland (RBS) plc and Ulster Bank Limited (UBL) to A- (from BBB+), which S&P consider to be 'core '.

- Upgrade the long-term ratings of The Royal Bank of Scotland International Limited (RBSI) and Ulster Bank Ireland DAC (UBIDAC) to BBB+ (from BBB), which S&P consider to be 'highly strategic'.

- Affirm the long-term ratings of The Royal Bank of Scotland Group plc (RBSG)'s at BBB- and NatWest Markets Plc, NatWest Markets N.V. and NatWest Markets Securities Inc. senior unsecured debt ratings at BBB+, which S&P views now as 'highly strategic'.

- Affirm all short term operating entities ratings assigned to group entities at A-2 and The Royal Bank of Scotland Group plc's short term rating at A-3.

- Assign RBSG and all group entities a Positive Outlook

The upgrade reflects S&P's view that RBS group's shift to a simpler, more U.K.-centric retail and commercial banking operations, will yield more consistent statutory profit. The May 2018 agreement in principle with the U.S. Department of Justice to settle legacy litigation related to RMBS 'eliminates the largest litigation risk to RBS' solvency'. The positive outlook on all group entities indicates 'the potential for a further upgrade, since [S&P] believes the bank's risk profile, notably asset quality, and risks to its capitalization are gradually converging toward those of RBS' U.K. peers.'

S&P's summary credit ratings:

For further information please contact:

Paul Pybus

Head of Debt Investor Relations

+44 (0) 20 7678 1153

RBS Media Relations:

+44 (0) 13 1523 4205

Forward-looking statements

This announcement contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including (but not limited to) those related to RBS and its subsidiaries' regulatory capital position and requirements, financial position, future pension funding and contribution requirements, ongoing litigation and regulatory investigations, profitability and financial performance (including financial performance targets), structural reform and the implementation of the UK ring-fencing regime, the implementation of RBS's restructuring and transformation programme, impairment losses and credit exposures under certain specified scenarios, increasing competition from new incumbents and disruptive technologies and RBS's exposure to political risks, operational risk, conduct risk, cyber and IT risk and credit rating risk. In addition, forward-looking statements may include, without limitation, the words 'expect', 'estimate', 'project', 'anticipate', 'commit', 'believe', 'should', 'intend', 'plan', 'could', 'probability', 'risk', 'Value-at-Risk (VaR)', 'target', 'goal', 'objective', 'may', 'endeavour', 'outlook', 'optimistic', 'prospects' and similar expressions or variations on these expressions. These statements concern or may affect future matters, such as RBS's future economic results, business plans and current strategies. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, legislative, political, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, interest and exchange rate fluctuations and general economic conditions. These and other factors, risks and uncertainties that may impact any forward-looking statement or RBS's actual results are discussed in RBS's UK 2017 Annual Report and Accounts (ARA) and other materials filed with, or furnished to, the US Securities and Exchange Commission. The forward-looking statements contained in this announcement speak only as of the date of this announcement and RBS does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise, except to the extent legally required.

This information is provided by RNS

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