Fitch boosts RBS

Fitch Ratings said it upgraded Royal Bank of Scotland Group and Royal Bank of Scotland's individual ratings to C/D from D/E to reflect progress with extensive restructuring plans, improvements in risk management procedures, a resilient franchise and solid capitalization in the face of a still challenging operating environment.

The agency affirmed the long-term issuer default rating at AA-, short-term issuer default rating at F1+, support at 1 and support rating floor at AA-.

The outlook on the long-term issuer default rating is stable.

"The restructuring is progressing well and as the economy recovers, the group's strong U.K. franchise and broad client and product diversification can drive improvements in profitability," Cynthia Chan, a senior director in Fitch's financial institutions team.

"Nonetheless, reshaping the group's balance sheet, running off more than £200 billion of non-core assets and reducing reliance on wholesale funds is an undoubted challenge, the success of which is in part dependent on factors beyond the group's control."

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