Fitch Places UK-Government Guaranteed Bank Debt on RWN

Thu Apr 11, 2013 12:42pm EDT

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(The following statement was released by the rating agency) LONDON, April 11 (Fitch) Fitch Ratings has placed the state-guaranteed debt programmes and/or state-guaranteed debt issued by Barclays Bank plc (Barclays), Abbey National Treasury Services plc (ANTS), Lloyds TSB Bank plc, Northern Rock (Asset Management) (NRAM) and Bradford & Bingley (B&B) on Rating Watch Negative (RWN). The rating actions follow the RWN placed on the UK sovereign Long-term Issuer Default Rating (IDR) on 22 March 2013 (see "Fitch Places United Kingdom on Rating Watch Negative" available on www.fitchratings.com). KEY RATING DRIVERS The ratings of Barclays', Lloyds TSB's, and ANTS's guaranteed programmes and/or issues made under the programme reflect the guarantee of the UK government under the National Loan Guarantee Scheme (NLGS). Although ANTS has an NLGS programme outstanding, it has not issued any notes under it. NRAM and B&B's senior unsecured debt is guaranteed by the UK government until maturity under public law and Fitch views the default risk of these securities to be materially the same as the UK sovereign risk. RATING SENSITIVITIES - SENIOR UNSECURED GUARANTEED DEBT AND GUARANTEED PROGRAMME RATINGS The banks' senior unsecured guaranteed debt is sensitive to any change in the UK sovereign rating. In the case of the NLGS Fitch believes that timely payment will be made on any guaranteed liabilities because of the high strategic importance of this scheme to the UK government as it is intended to facilitate access to cheaper financing for small businesses. In the case of NRAM and B&B, the rating is also sensitive to any material changes to the conditions of the guarantee granted by the UK government to these banks' senior debt. The following is a list of issues affected by this rating action. Abbey National Treasury Services GBP1bn guaranteed programme: 'AAA' placed on RWN Barclays Bank plc GBP1.5bn notes issued with NLGS guarantee, XS0768454844: 'AAA' placed on RWN Lloyds TSB Bank plc GBP6bn guaranteed programme: 'AAA' placed on RWN GBP1.4bn senior long-term notes issued with NLGS guarantee, XS0778434000: 'AAA' placed on RWN Northern Rock (Asset Management) Senior long-term guaranteed notes, XS0209776714; XS0254697807; XS0203310973; XS0215699686; XS0204375371; XS0101368818; XS0297756214; XS0307941764; XS0220474695,: 'AAA' placed on RWN Bradford & Bingley Senior long-term guaranteed notes, XS0210889605; XS0201827929; XS0318465795: 'AAA' placed on RWN Contact: Primary Analyst (Barclays) Christian Scarafia Senior Director +39 02 87 90 87 212 Fitch Italia S.p.A. V.lo S. Maria alla Porta 1 20123 Milan Primary Lloyds (TSB) Denzil de Bie Director+44 20 3530 1592 Fitch Ratings Limited 30 North Colonnade London E14 5GN Primary Analyst (NRAM, B&B and Abbey National Treasury Services) Maria Rivas Director + 44 20 3530 1163 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst (Lloyds TSB, NRAM and B&B and Abbey National Treasury Services) Claudia Nelson Senior Director + 44 20 3530 1191 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst (Barclays) Matthew Clark Director +44 20 3530 1225 Committee Chairperson Maria Jose Lockerbie Managing Director +44 20 3530 1083 Media Relations: Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com. Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. Applicable criteria, 'Global Financial Institutions Rating Criteria', dated 15 August 2012 at www.fitchratings.com. Applicable Criteria and Related Research Global Financial Institutions Rating Criteria here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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