Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 73

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 73
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 markets, could
lead to a significant deterioration in market prices of below-investment grade rated securities such as the Additional Tier 1 Securities.

The credit risk of the Group, its credit ratings,
and its credit spreads may adversely affect the value of the Additional Tier 1 Securities.

Any actual or anticipated decline in our credit
ratings, changes in the market’s view of our creditworthiness or any increase in our credit spreads charged by the market for taking
credit risk are likely to adversely affect the value of the Additional Tier 1 Securities and cause the liquidity of the Additional Tier
1 Securities to decline significantly.

Our credit ratings are an assessment, by each
Rating Agency, of our ability to pay our obligations, including those under the Additional Tier 1 Securities. Any rating assigned to us
may be withdrawn entirely by a credit Rating Agency, may be suspended or may be lowered, if, in that credit Rating Agency’s judgement,
circumstances relating to the basis of the rating so warrant. Ratings may be impacted by a number of factors which can change over time,
including the credit Rating Agency’s assessment of: our strategy and management’s capability; our financial condition including
in respect of profitability, asset quality, capital, funding and liquidity; competitive and economic conditions in our key markets; the
level of political support for the industries in which we operate; the implementation of structural reform; the legal and regulatory frameworks
applicable to our legal structure; business activities and the rights of our creditors; changes in rating methodologies; changes in the
relative size of the loss-absorbing buffers protecting bondholders and depositors; the competitive environment, political and economic
conditions in our key markets (including any further Scottish independence referendum); any reduction of the U.K.’s sovereign credit
rating and market uncertainty. In addition, credit ratings agencies are increasingly taking into account environmental, social and governance
factors, including climate risk, as part of the credit ratings analysis, as are investors in their investment decisions.

The credit rating agencies may also revise the
ratings methodologies applicable to issuers within a particular industry, or political or economic region. If credit rating agencies
perceive there to be adverse changes in the factors affecting our credit rating, including by virtue of changes to applicable ratings
methodologies, the credit rating agencies may downgrade, suspend or withdraw the ratings assigned to us or other Group entities. Any
reductions in our credit ratings or the credit ratings of other Group entities, including, in particular, downgrades below investment
grade,