Scope Ratings has updated its rating report on the Barclays PLC group, rated A+ with Stable Outlook.

Following changes in the group’s legal structure to implement UK ring-fencing requirements, Scope affirmed the A+ Issuer Rating of Barclays Bank PLC and assigned first-time A+ Issuer Ratings to Barclays PLC and to Barclays Bank UK PLC. For further details on Scope’s views on ring-fencing, please refer to the report “UK Bank Ring-Fencing: Credit and Rating Implications”, February 2018.

Barclays’ ratings are driven by the group’s progress in adapting its business model to a changing operating environment. After the sell down of Barclays Africa, nearly half of the group’s revenues stem from consumer businesses (UK retail and business banking, credit cards) with strong franchises. Meanwhile, the investment banking business has been reduced and refocused. Over the last few years of restructuring, the various businesses have demonstrated encouraging resilience although profitability could be improved.

Scope notes management’s track record and continuing attention to maintaining appropriate levels of capital and liquidity. Certain material legal and conduct issues have recently been resolved but further potential reputational and litigation costs remain a risk.

Download the updated rating report on Barclays here.