S&P: Santander UK unaffected

Standard & Poor's said the ratings on Santander UK plc (AA/negative/A-1+) are not affected by its announcement that it plans to transfer materially all of the business of its subsidiary, Alliance & Leicester plc (AA/negative/A-1+), to Santander UK later this year as part of its existing plan to fully integrate its U.K. commercial banking operations and to realize cost savings.

Santander UK plans to transfer all of the senior debt as well as most of the subordinated debt. The agency said the only liability that cannot be transferred is the £300 million series A fixed/floating-rate noncumulative callable preference shares. Santander UK has said that it intends to exchange and cancel these shares, providing their holders with new preference shares issued by Santander UK with largely the same terms.

S&P does not expect any ratings impact for the transferred debt because the ratings on Santander UK and Alliance & Leicester are identical, both being core to Banco Santander SA.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.