Press Release

DBRS Assigns AA (low) Rating to Lloyds Banking Group plc, Trend Negative

Banking Organizations

January 19, 2009

DBRS has today assigned its AA (low) Issuer and Long-Term Debt rating to Lloyds Banking Group plc. The trend is Negative. This rating assignment follows the completion of the Lloyds TSB Group plc acquisition of HBOS plc (HBOS) in an all-stock transaction. As of 19 January 2009, the legal name of Lloyds TSB Group plc has changed to Lloyds Banking Group plc, which is the holding company for Lloyds TSB Bank plc and HBOS plc, both of which are rated AA with a Negative trend. A full list of ratings follows this release. For further information on the acquisition, please refer to the DBRS press release dated 16 January 2009. The rating differential between Lloyds Banking Group plc, the holding company, and Lloyds TSB Bank plc is consistent with DBRS’s rating methodology for bank holding companies.

Notes:
The applicable methodology is Analytical Background and Methodology for European Bank Ratings, Second Edition, which can be found on our website under Methodologies.

This is a Corporate (Financial Institutions) rating.

Ratings

Bank of Scotland plc

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
16-Jan-09	Senior Debt & Deposits	AA	Neg	Downgraded	US E
16-Jan-09	Commercial Paper	R-1 (high)	Neg	Trend Change	US E
16-Jan-09	Debt Guaranteed by HM Treasury	AAA	Stb	Confirmed	US E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
16-Jan-09	Senior Debt & Deposits	AA	Neg	Downgraded	US E
16-Jan-09	Commercial Paper	R-1 (high)	Neg	Trend Change	US E
16-Jan-09	Subordinated Debt	AA (low)	Neg	Downgraded	US E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
16-Jan-09	Senior Debt & Deposits	AA	Neg	Downgraded	US E
16-Jan-09	Short-Term Debt	R-1 (high)	Neg	Trend Change	US E
16-Jan-09	Debt Guaranteed by HM Treasury	AAA	Stb	Confirmed	US E
16-Jan-09	Subordinated Debt	AA (low)	Neg	Downgraded	US E
16-Jan-09	GBP 50 billion Senior Debt Issuance Programme	AAA	Stb	Confirmed	US E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
19-Jan-09	Issuer and Long-Term Debt	AA (low)	Neg	New Rating	US E

Bank of Scotland plc

Senior Debt & Deposits

Date Issued:Jan 16, 2009
Rating Action:Downgraded
Ratings:AA
Trend:Neg
Rating Recovery:
Issued:USE

Commercial Paper

Date Issued:Jan 16, 2009
Rating Action:Trend Change
Ratings:R-1 (high)
Trend:Neg
Rating Recovery:
Issued:USE

Debt Guaranteed by HM Treasury

Date Issued:Jan 16, 2009
Rating Action:Confirmed
Ratings:AAA
Trend:Stb
Rating Recovery:
Issued:USE

HBOS plc

Senior Debt & Deposits

Date Issued:Jan 16, 2009
Rating Action:Downgraded
Ratings:AA
Trend:Neg
Rating Recovery:
Issued:USE

Commercial Paper

Date Issued:Jan 16, 2009
Rating Action:Trend Change
Ratings:R-1 (high)
Trend:Neg
Rating Recovery:
Issued:USE

Subordinated Debt

Date Issued:Jan 16, 2009
Rating Action:Downgraded
Ratings:AA (low)
Trend:Neg
Rating Recovery:
Issued:USE

Lloyds Bank plc

Senior Debt & Deposits

Date Issued:Jan 16, 2009
Rating Action:Downgraded
Ratings:AA
Trend:Neg
Rating Recovery:
Issued:USE

Short-Term Debt

Date Issued:Jan 16, 2009
Rating Action:Trend Change
Ratings:R-1 (high)
Trend:Neg
Rating Recovery:
Issued:USE

Debt Guaranteed by HM Treasury

Date Issued:Jan 16, 2009
Rating Action:Confirmed
Ratings:AAA
Trend:Stb
Rating Recovery:
Issued:USE

Subordinated Debt

Date Issued:Jan 16, 2009
Rating Action:Downgraded
Ratings:AA (low)
Trend:Neg
Rating Recovery:
Issued:USE

GBP 50 billion Senior Debt Issuance Programme

Date Issued:Jan 16, 2009
Rating Action:Confirmed
Ratings:AAA
Trend:Stb
Rating Recovery:
Issued:USE

Lloyds Banking Group plc

Issuer and Long-Term Debt

Date Issued:Jan 19, 2009
Rating Action:New Rating
Ratings:AA (low)
Trend:Neg
Rating Recovery:
Issued:USE

ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.

Download This Press Release