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Fitch Affirms NRAM and B&B Senior Debt at 'AA+'
October 20, 2015 / 4:06 PM / 2 years ago

Fitch Affirms NRAM and B&B Senior Debt at 'AA+'

(The following statement was released by the rating agency) LONDON, October 20 (Fitch) Fitch Ratings has affirmed NRAM plc's (NRAM) and Bradford & Bingley plc's (B&B) senior unsecured debt at 'AA+'. A full list of rated issues is available at the end of this rating action commentary. KEY RATING DRIVERS NRAM's and B&B's senior unsecured debt ratings reflect Fitch's view that the default risk on these securities is materially the same as that of the UK sovereign (AA+/Stable). This is because NRAM's and B&B's private sector unsecured senior and unsubordinated debt as well as any accumulated interest on them are guaranteed by the UK government under a public law guarantee, granted when the institutions were nationalised. The guarantee extends until the maturity of the guaranteed debt. Fitch believes that even though there is no specific reference to the guarantee being unconditional and irrecoverable, it would be extremely unlikely that the UK would assume any reputational or economic risk by failing to provide support if needed. RATING SENSITIVITIES NRAM's and B&B's senior unsecured debt ratings are sensitive to a change in the UK's sovereign rating or to a change in the conditions of the guarantee granted by the UK government to NRAM and B&B. Fitch believes that timely payment under the guarantee is highly likely as non-payment of the guarantor would seriously tarnish the UK's reputation in this important area of public policy. Even if government policies in this area were to change, we believe the government would still honour the guarantee given the reputational implications of failing to do so. The rating actions are as follows: NRAM XS0101368818 GBP200m maturing December 2019 affirmed at 'AA+' B&B XS0281590488 EUR30m maturing February 2047 affirmed at 'AA+' Contact: Primary Analyst Claudia Nelson Senior Director + 44 20 3530 1191 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst John Boulton Director +44 20 3530 1673 Committee Chairperson Christian Scarafia Senior Director +44 20 3530 1012 Media Relations: Francoise Alos, Paris, Tel: +33 1 44 29 91 22, Email: francoise.alos@fitchratings.com; Elaine Bailey, London, Tel: +44 203 530 1153, Email: elaine.bailey@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria Global Bank Rating Criteria (pub. 20 Mar 2015) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here _id=992583 Solicitation Status here Endorsement Policy here ail=31 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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