DBRS revises RBS view to stable

DBRS said it confirmed the ratings of Royal Bank of Scotland plc (RBS) at BBB (high) for senior debt and deposits, A for the long-term critical obligations and R-1 (low) for the short-term notes.

The trend was revised to stable.

The intrinsic assessment (IA) for RBS is BBB (high), while the support assessment remains SA3, reflecting the agency’s view that developments in European regulation and legislation mean that there is less certainty about the likelihood of timely systemic support. As a result, the bank’s final ratings are positioned in line with its IA.

In revising the trend to stable, DBRS said it recognizes the progress that RBS has continued to make over the past 18 months in restructuring the group, illustrated by the full disposal of Citizens in October 2015, and the 84% reduction in RBS Capital Resolution’s funded assets since its inception in January 2014. As a result, RBS has also demonstrated further improvements in asset quality, costs, funding and capital, the agency said.

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