National Westminster Bank Plc Primary Credit Analyst: Richard Barnes, London + 44 20 7176 7227;
[email protected] Secondary Contact: John Wright, London (44) 20-7176-0520;
[email protected] Table Of Contents Major Rating Factors Outlook Rationale Related Criteria Related Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT NOVEMBER 23, 2020 1 National Westminster Bank Plc Major Rating Factors Global Scale Ratings Issuer Credit Rating A/Negative/A-1 Resolution Counterparty Rating A+/--/A-1 Strengths: Weaknesses • Core subsidiary of NatWest Group plc. • The sharp recession triggered by the COVID-19 pandemic significantly increased credit impairments. • Solid market position across U.K. retail, commercial, and private banking. • Pressure on revenues from the flatter yield curve and reduced customer activity in some product • Supportive capital, funding, and liquidity profiles. segments. • Geographically concentrated in the U.K. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT NOVEMBER 23, 2020 2 National Westminster Bank Plc Outlook S&P Global Ratings' negative outlook on National Westminster Bank Plc (NWB) mirrors that on ultimate parent NatWest Group plc (NWG; previously named The Royal Bank of Scotland Group plc). It reflects downside risks to the group's asset quality and earnings from the economic and market impact of the COVID-19 pandemic. Although we view positively NWG's robust balance sheet profile and the unprecedented fiscal and monetary response, an extended economic downturn could further increase impairment losses and weaken revenues over our two-year outlook horizon. Our ratings on NWB will move in tandem with those on NWG as long as we continue to view NWB as a core subsidiary of the group.