DBRS changes NatWest trend to positive

DBRS said it changed its trend for NatWest Group plc and NatWest Markets plc to positive from stable.

The positive trend considers the group’s healthy franchise in the U.K., helped by moving past its legacy issues, better financial metrics, including higher profitability, and solid asset quality, the agency said.

“Despite a deteriorating macroeconomic environment, DBRS Morningstar considers the initial impact of higher interest rates to be revenue positive. Higher provisions and higher operating costs could materialize at a later stage; however, the deterioration would have to be significant to affect DBRS Morningstar’s overall credit assessment of NatWest’s long-term ratings,” DBRS said in a press release.

DBRS also affirmed NatWest’s long-term issuer rating at BBB (high) and NatWest Markets’ long-term issuer rating at A (low).

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