S&P Global Ratings affirmed Barclays PLC's long- and short-term issuer credit ratings at A/A-1 and revised the outlook on the long-term rating to stable from negative, citing the U.K.-based lender's resilient performance.

The rating agency also took the same action on the group's core units including Barclays Bank PLC, Barclays Bank UK PLC, Barclays Bank Ireland PLC, Barclays Capital Inc. and Barclays Execution Services Ltd.

For full year 2020, the British banking group's attributable profit stood at £1.53 billion, compared to £2.46 billion in 2019. "Although we think CIB may struggle to repeat its 2020 performance, its contribution should remain relatively strong in 2021," the rating agency said.

Credit impairment charges rose to £4.84 billion in 2020 from £1.91 billion, which Barclays attributed to the deterioration in economic outlook caused by the coronavirus pandemic. Based on central economic forecasts, the agency now expects Barclays' 2021 loan loss rate will fall to about 70-80 basis points from 138 bps in 2020.

S&P Global Ratings said Barclays is better positioned to maintain credit metrics consistent with the current ratings as the credit cycle plays out. "We see the bank's provision coverage as prudent and a mitigant to residual downside macroeconomic risks."

The stable outlook on Barclays and its core operating subsidiaries reflects the agency's expectation that its credit profile will "remain resilient" over the remainder of the current credit cycle. S&P Global Ratings expects Barclays impairment charge to decline materially in 2021, leading to stronger profitability, and expects the lender to maintain robust capital and liquidity ratios.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.