Moody'son April 13 upgraded BancoSantander SA unit Santander UK Plc's long-term foreign- and local-currencybank deposits ratings to Aa3 from A1 and affirmed its A1 long-term issuerrating, P-1 short-term bank deposits rating and Aa2(cr)/P-1(cr) counterpartyrisk assessments.
Theagency also upgraded AbbeyNational Treasury Services Plc's long-term foreign-currency bank depositsrating to Aa3 from A1. The outlook on Santander UK's issuer rating was changedto positive.
Theupgrade of Santander UK's long-term deposit rating and the affirmation of theissuer rating are based on the bank's baseline credit assessment of"a3" and the results of Moody's advanced loss given failure analysis,which indicates that the bank's deposits and senior unsecured debt are likelyto face very low loss-given failure.
Theoutlook on the bank's deposit rating is stable, incorporating the improvementsin the bank's solvency profile and more generally in its credit fundamentals.The positive outlook on the issuer rating reflects the group's near-termfunding plans.