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Fitch lifts NatWest subsidiaries’ ratings to AA, outlook stable

Story Highlights
  • Fitch upgraded several core NatWest banking subsidiaries’ long-term ratings to AA from AA-, reflecting stronger perceived credit quality.
  • The upgrades, with a Stable outlook maintained, enhance NatWest’s funding flexibility and competitive standing in European banking markets.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Fitch lifts NatWest subsidiaries’ ratings to AA, outlook stable

Meet Samuel – Your Personal Investing Prophet

NatWest Group ( (GB:NWG) ) has issued an announcement.

NatWest Group said Fitch Ratings has upgraded the long-term Issuer Default Ratings of several key banking subsidiaries, including National Westminster Bank, The Royal Bank of Scotland and NatWest Markets entities, to AA from AA-, following changes to Fitch’s bank rating criteria. The agency also raised the long-term senior unsecured debt ratings of these subsidiaries to AA, while maintaining a Stable outlook, which underscores strengthened credit quality for NatWest’s core operating units and may support future funding flexibility and investor confidence.

The rating upgrades cover both operating banks and international units such as NatWest Bank Europe and NatWest Markets N.V., aligning their profiles at a higher investment-grade level. While Fitch reiterates that ratings are not investment recommendations, the move signals improved perceived resilience across NatWest’s key franchises, potentially enhancing the group’s standing in wholesale markets and its competitive position among large European banking peers.

The most recent analyst rating on (GB:NWG) stock is a Buy with a £730.00 price target. To see the full list of analyst forecasts on NatWest Group stock, see the GB:NWG Stock Forecast page.

Spark’s Take on NWG Stock

According to Spark, TipRanks’ AI Analyst, NWG is a Neutral.

The score is driven mainly by mixed fundamentals: strong profitability and improving leverage are offset by highly inconsistent (and most recently negative) operating/free cash flow. Technical indicators further weigh on the score due to weak momentum and trading below key moving averages. These risks are partially balanced by attractive valuation (low P/E, high dividend yield) and a generally positive earnings call with raised income guidance and strong capital generation.

To see Spark’s full report on NWG stock, click here.

More about NatWest Group

NatWest Group is a major U.K.-based banking and financial services group, operating through brands including National Westminster Bank, The Royal Bank of Scotland and NatWest Markets. It focuses on retail and commercial banking, corporate and investment banking, and wealth management across the U.K. and select international markets.

Average Trading Volume: 22,792,561

Technical Sentiment Signal: Buy

Current Market Cap: £46.13B

For an in-depth examination of NWG stock, go to TipRanks’ Overview page.

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