Standard & Poor’s has affirmed the ratings for HBOS and its related subsidiaries, including the 'AA-/A-1+' long- and short-term ratings on the group’s holding company HBOS PLC.
It also affirmed the 'AA/A-1+' long- and short-term ratings on core subsidiaries Halifax PLC and Bank of Scotland, and the 'AA' long-term ratings on Clerical Medical Investment Group Ltd.
The outlook on HBOS PLC, the core subsidiaries, and 60%-owned subsidiary St. James's Place U.K. PLC remains negative, said the ratings agency.
The outlook on Bank of Western Australia remains positive in anticipation of its increased strategic importance to the group following HBOS' acquisition in August 2003 of the 43% stake that it did not already own.
Standard & Poor's credit analyst Richard Barnes, said: “The ratings on HBOS are based on its strong business position, the potential offsetting impact of rapid lending growth on its generally good asset quality, its improving earnings, and satisfactory capitalization.
