KBRA Affirms Ratings for Barclays Bank PLC
7 Aug 2026 | Dublin
KBRA Europe (KBRA) affirms the deposit and senior unsecured debt ratings of A+ and short-term deposit and debt ratings of K1 for Barclays Bank PLC, a subsidiary of Barclays PLC (LON: BARC) (“Barclays” or "the group"), an international financial institution. The Outlook for the long-term ratings is Stable. The ratings are in support of a KBRA public finance transaction.
| This credit rating is an unsolicited credit rating. | |
|---|---|
| With Rated Entity or Related Third-Party Participation | Yes |
| With Access to Internal Documents | No |
| With Access to Management | No |
Key Credit Considerations
The ratings are based on KBRA's view that Barclays is well positioned to deliver sustainable earnings. The group's earnings capacity provides resilience to periodic conduct, restructuring, impairment and other exceptional items, although KBRA does not expect such items to remain at the elevated levels seen in recent years. Barclays' diversified business model is anchored by strong UK retail and corporate banking franchises, a targeted US consumer platform, and select global investment banking operations. While investment banking is a core contributor to earnings, it is inherently more volatile and risk-intensive than the group's retail, consumer and corporate banking businesses, constraining the ratings. Asset quality has been sound, reflecting resilient credit performance across the portfolio. Mortgage performance has been strong, while UK and US card arrears increased modestly year-on-year. In KBRA's view, conservative underwriting standards and prudent provisioning support the group's credit profile. Barclays' sound capitalisation and strong liquidity also support the ratings. The group’s solid funding profile benefits from its strong deposit base, although there is considerable reliance on wholesale funding for investment banking operations. As of end-1H 2026, Barclays had delivered approximately £25 billion of its planned c.£30 billion of UK risk-weighted assets (RWA) growth target, of which, approximately £18 billion was generated organically. Investment banking represented 56% of group RWAs at end-1H 2026. Management expects its share of group RWAs to remain in the mid-50s during 2026 before declining to around 50% by 2028.
Rating Sensitivities
A rating upgrade is not expected in the near to intermediate term. However, sustained improvement in earnings, while maintaining healthy asset quality and strong capital could facilitate positive rating momentum over time. A rating downgrade is unlikely in the medium term, though a severe and/or prolonged setback in the economic recovery or material weaknesses in risk management leading to a substantial deterioration in asset quality, earnings, or capital, may result in negative rating action. The ratings are also sensitive to the economic effects of Brexit and global related uncertainties.
To access ratings and relevant documents, click here.