Moody's on Dec. 21 upgraded Santander UK Plc's long-term issuer rating and senior unsecured ratings to Aa3 from A1, while revising the outlook on them to negative from stable.
The ratings action reflects the agency's assessment that reforms in the Banco Santander SA unit's liability structure have resulted in a lower loss given failure for senior unsecured creditors. However, the outlook revision takes into account that negative pressures continue to weigh on the bank's stand-alone credit profile.
Moody's also upgraded Santander UK units Abbey National Treasury Services Plc's backed senior unsecured regular bond/debenture and Alliance & Leicester plc's long-term issuer rating to Aa3 from A1. The outlook on the two ratings was revised to negative from stable.