Fitch upgrades credit ratings for NatWest subsidiaries to 'AA'

(Alliance News) - NatWest Group PLC on Wednesday noted credit rating upgrades for several of its subsidiaries.

The Edinburgh-based lender said Fitch Ratings on Tuesday had lifted ratings for various NatWest subsidiaries, after an update of their bank rating criteria.

Fitch has upgraded the long-term issuer default ratings of National Westminster Bank PLC, Royal Bank of Scotland PLC, NatWest Bank Europe GmbH, NatWest Markets PLC, NatWest Market NV and Royal Bank of Scotland International Ltd to 'AA' from 'AA-'.

The rating agency's outlook across these companies remains 'stable'.

NatWest shares rose 1.0% to 564.80 pence on Wednesday morning in London.

At the beginning of the month, the lender reported double-digit profit growth in the first quarter of 2026, but maintained a more cautious than expected top-line outlook.

NatWest's pretax profit rose 12% to GBP2.03 billion in the three months ended March 31 from GBP1.81 billion a year before. Total income increased 9.5% to GBP4.36 billion from GBP3.98 billion.

The lender upped its full-year total income guidance, targeting income excluding notable items at the top end of its GBP17.2 billion to GBP17.6 billion range, which at best would represent a 7.3% rise from GBP16.40 billion in 2025. However, an outcome of GBP17.96 billion had been expected by the market, according to company-compiled consensus.

NatWest still expects a return on tangible equity "greater than 17%" for 2026, before rising to 18% in 2028. The RoTE was 19.2% in 2025.

By Holly Munks, Alliance News reporter

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