OREANDA-NEWS. Fitch Ratings has affirmed NRAM plc's (NRAM) and Bradford & Bingley plc's (B&B) senior unsecured debt at 'AA+'. A full list of rated issues is at the end of this rating action commentary.

KEY RATING DRIVERS - SENIOR UNSECURED DEBT
NRAM's and B&B's senior unsecured debt ratings reflect Fitch's view that the default risk on these securities is materially the same as the UK sovereign risk (AA+/Stable). This is because NRAM and B&B have their private sector unsecured senior and unsubordinated debt as well as any accumulated interest on them, guaranteed by the UK government under a public law guarantee, granted when the institutions were nationalised.

The guarantee extends until the maturity of the guaranteed debt. Fitch believes that even though there is no specific reference to the guarantee being unconditional and irrecoverable, it would be extremely unlikely that the UK would assume any reputational or economic risk by failing to provide support if needed.

RATING SENSITIVITIES - SENIOR UNSECURED DEBT
NRAM's and B&B's senior unsecured debt ratings are sensitive to a change in Fitch's assumptions around the UK sovereign rating or to any material changes to the conditions of the guarantee granted by the UK government to NRAM and B&B.

Fitch believes that timely payment under the guarantee is highly likely even under a new government, as non-payment of the guarantor would seriously tarnish the UK's reputation in this important area of public policy.

The rating actions are as follows:

NRAM
Senior debt ratings for the following issues affirmed at 'AA+'
XS0215699686 EUR20m maturing March 2015
XS0101368818 GBP200m maturing December 2019
XS0220474695 USD50m maturing June 2015

B&B
Senior debt ratings for the following issues affirmed at 'AA+'
XS0281590488 EUR30m maturing February 2047