CORRECTED - (OFFICIAL) - Fitch may still change Northern Rock rtg

Fitch corrects the version of release issued earlier today. The senior
unsecured debt is maintained on Rating Watch Evolving and not affirmed.

Aug 10 - Fitch Ratings has today maintained Northern Rock's (NR) Long-term
Issuer Default Rating (IDR) of 'A-' on Rating Watch Evolving (RWE). Fitch has
simultaneously downgraded NR's Lower Tier 2 debt securities to 'B-' from 'B+',
downgraded its Upper Tier 2 debt securities to 'CCC' from 'B' and downgraded
its Tier 1 debt securities to 'CC' from 'B-'.

The agency has maintained the Lower Tier 2 securities on Rating Watch
Negative (RWN). The Upper Tier 2 and Tier 1 securities have been removed from
RWN. A full rating breakdown is provided below.

The downgrading of the Lower Tier 2, the Upper Tier 2 and Tier 1 debt
securities reflects Fitch's opinion that, after the loss of GBP740m reported by
NR for H109, it is increasingly probable that the coupons on these securities
will be deferred.

After the bank's planned division into two legal entities, which is
expected to take place after the European Commission has approved the UK state
aid package, the securities will be held by AssetCo. Fitch considers it more
probable that management will want to retain earnings within AssetCo for the
benefit of senior debt holders, including the UK Treasury, rather than pay
coupons on subordinated debt.

The board of directors has discretion over whether to defer the Upper Tier
2 and Tier 1 debt securities' coupons, whilst it would be necessary to amend
the contractual terms of the Lower Tier 2 debt securities in order for their
coupons to be deferred.

Fitch notes that the position of AssetCo, a going concern being wound down,
would be substantially similar to the case of Bradford & Bingley where the
terms of the Lower Tier 2 debt securities were changed by statutory instrument
to prevent payment of capital and interest until its obligations to the
Financial Services Compensation Scheme had been met in full.

The rating actions affecting NR are as follows:

Long-term Issuer Default (IDR) 'A-'; maintained on Rating Watch Evolving
(RWE)

Senior unsecured debt 'A-'; maintained on Rating Watch Evolving (RWE)

Short-term IDR affirmed at 'F1+'

Individual Rating affirmed at 'F' Support Rating '1'; maintained on RWN

Support Rating Floor 'A-'; maintained on RWE

Lower Tier 2 subordinated debt downgraded to 'B-' from 'B+'; maintained on
Rating Watch Negative (RWN)

Upper Tier 2 subordinated debt downgraded to 'CCC' from 'B'; removed from
RWN

Tier 1 securities downgraded to 'CC' from 'B-'; removed from RWN