London, 16 March 2016 -- Moody's Investors Service (Moody's) has today taken rating
actions on seven Norwegian banks.
The rating agency changed the outlook to negative from stable on the deposit
and debt ratings of four regional savings banks, SpareBank 1 SR-Bank
ASA, Sparebanken Vest, Sparebanken Sor and Sparebanken Sogn
og Fjordane, to capture downward pressure on earnings and increasing
asset risks in their corporate and commercial real estate lending books
as a result of a slowdown in Norway's economic growth driven by a reduction
in petroleum sector investments. At the same time, Moody's
affirmed the deposit and senior debt ratings of these banks, ranging
from A1 to A2, to reflect their strong financial profiles,
Norway's still very strong operating environment overall,
and Moody's assessment of the protection offered to creditors by
their liability structures and the likelihood of affiliate and government
support.
Moody's also upgraded the long-term debt ratings of DNB Bank
ASA (DNB) to Aa2 from Aa3, aligning them with the bank's Aa2 deposit
ratings, which were also affirmed, to reflect the increase
in loss absorbing liabilities on the bank's balance sheet over the
last several quarters, which benefits the position of senior unsecured
debt in the loss hierarchy under Moody's loss given failure (LGF)
framework. The rating agency also changed the outlook on DNB's
debt and deposit ratings to negative from stable, reflecting pressures
similar to those outlined above.
Finally, Moody's affirmed the Aa3 senior unsecured debt and
deposit ratings of Nordea Bank Norge ASA and the A1 senior unsecured debt
and deposit ratings of SpareBank 1 SMN, and maintained stable outlooks
on these ratings. While Nordea Bank Norge's intrinsic strength
faces pressures similar to those outlined above, this is balanced
against the support that Moody's expects the bank would receive
in case of need from the Nordea group. The stable outlook on SpareBank
1 SMN's A1 senior unsecured debt and deposit ratings reflects their
resilience to some performance deterioration, taking into account
the bank's current stronger than peer performance metrics.
A full list of the affected ratings is provided at the end of this press
release.
In terms of the change in rating outlooks to negative, the rating
agency expects that the spill-over effects from Norway's
economic slowdown on the corporate sector will impact banks' balance
sheets, particularly in the oil and offshore sector, as well
as the commercial real estate sector, which Moody's considers
particularly susceptible to volatility. Petroleum sector investments
have been the growth engine for Norway's economy, and Moody's
expects real GDP growth at 1.4% for 2016, down from
1.6% in 2015 and 2.2% in 2014, as stated
in Moody's latest credit opinion on the sovereign.
RATINGS RATIONALE
DNB Bank ASA
The upgrade of DNB's senior unsecured debt ratings to Aa2,
from Aa3, reflects Moody's view that the recently enhanced
volume of senior unsecured debt and underlying subordination, which
benefits the position of senior debt, will be sustainable.
This leads to a very low loss given failure (LGF) for senior debt,
increasing LGF uplift on DNB's senior unsecured debt ratings to
two notches from one. This aligns DNB's senior debt ratings
with its deposit ratings, which have been affirmed and similarly
benefit from a two-notch LGF uplift. Taking into account
the Norwegian government's 34% ownership of the bank, Moody's
also continues to assumes high probability of government support being
forthcoming in the event of need, translating into an additional
two notches of support uplift for DNB's senior debt and deposit
ratings.
The affirmation of DNB's Aa2 deposit rating also takes into account the
bank's a3 baseline credit assessment (BCA), which reflects
Moody's view of strong asset quality and capital, balanced
against high reliance on international capital markets. Moody's
considers that DNB's asset quality benefits from a diversified loan book
and the strength of the bank's retail and large corporate customers.
DNB's problem loan ratio declined to 1.5% at the end
of December 2015, compared to 1.9% in 2014.
In line with its domestic and international peers, the bank has
increased its capital buffers: the ratio of tangible common equity
to risk-weighted assets stood at 16.3% at the end
of December 2015, up from 13.8% in 2014. While
DNB benefits from a solid deposit base and access to local and international
capital markets, reliance on market funding remains high (market
funds stood at 37% of tangible banking assets at the end of December
2015), and the average maturity of funding has reduced, which
renders the bank vulnerable to potential shifts in investor sentiment.
Despite the resilience of the bank's performance, the change
in outlook on DNB's senior unsecured debt and deposit ratings to
negative reflects Moody's expectation that Norway's slowing growth
resulting from low oil prices and reduced oil investments will,
over time, have a negative impact on DNB's performance. Moody's
expects the softening in the operating environment to negatively impact
DNB's earnings. In addition, the bank's sizeable
exposures to offshore, shipping and commercial real estate (CRE)
segments carry higher credit risks and are likely to weaken. While
the bank's oil-related loan portfolio continues to perform
well, exposure to riskier oilfield services and the offshore sector
accounts for a sizeable 5.2% of DNB's Exposure at
Default and Moody's expects these segments to experience an increase
in losses in the short to medium term.
WHAT COULD CHANGE THE RATING UP/DOWN
Upward pressure on DNB's debt and deposit rating is unlikely in
the near term given the negative outlook. The outlook could return
to stable if DNB: (1) further reduces its asset vulnerability,
especially in relation to oil-related and offshore exposures as
well as to historically more volatile segments, such as shipping
and CRE; (2) maintains strong and stable earnings generation without
increasing its risk profile; and (3) preserves sustained access to
international capital markets.
Downwards pressure on these ratings could develop if: (1) DNB's
financing conditions were to become less cost effective; (2) its
asset quality were to deteriorate beyond Moody's expectations;
and/or (3) its risk profile increases, for example as a result of
increased exposures to more volatile sectors or increased involvement
in more risky operations such as capital market activities. In
addition, Moody's considers that downward pressure on the
ratings could develop as a result of external factors such as in the event
of substantially adverse developments in the Norwegian oil, offshore
and real-estate markets.
Nordea Bank Norge ASA
The affirmation of Nordea Bank Norge's Aa3 deposit and senior unsecured
debt ratings, with a stable outlook, reflects Moody's
view that any deterioration in performance stemming from the more challenging
operating environment will be offset by intra-group support from
the Nordea group in case of need.
Nordea Bank Norge has a solid business franchise as Norway's second-largest
financial institution with a sizeable retail portfolio. Moody's
expects downward pressure on Nordea Bank Norge's earnings and asset
quality to increase, resulting from the bank's sizeable exposures
to real estate companies (16% of the loan book at end-2015)
and shipping and offshore (9% of the loan portfolio), the
performance of which are likely to deteriorate because of the low oil
prices and reduced oil investments, and the related deterioration
in the bank's domestic operating environment.
However, in view of the bank's strong integration in the Nordea
Group and the strong history of group support, Moody's expects
that a potential one notch downward BCA movement would not result in a
change in the bank's adjusted BCA of a3, which incorporates
affiliate support. Moody's aligns the adjusted BCA of Nordea Bank
Norge with the a3 Nordea group BCA.
Moody's also applies its Advanced LGF analysis on the consolidated balance
sheet of Nordea Group as the rating agency considers that a single point
of entry resolution approach is probable across the Nordic countries in
which the Nordea group operates. This translates into a two-notch
uplift on senior debt and deposit ratings. Finally, Moody's
assesses the probability of government support in case of need as moderate,
translating into a one notch government support uplift. Therefore,
taking into account support considerations, the deposit and senior
unsecured debt ratings of Nordea Bank Norge ASA are aligned to those of
Nordea Bank AB, with a stable rating outlook.
WHAT COULD CHANGE THE RATING UP/DOWN
Although upward pressure on Nordea Bank Norge's ratings is unlikely
in the near term, as Moody's expects that the bank's
BCA will come under downward pressure as a result of the weakening operating
environment, a limited amount of upward rating momentum could develop
if Nordea Bank Norge demonstrates: (1) an improved funding profile
on a stand-alone basis and continued solid access to capital markets;
(2) stronger and more stable earnings generation without an increase in
its risk profile; and/or (3) reduced asset vulnerability especially
in relation to more volatile segments such as shipping, offshore
and commercial real estate.
Nordea Bank Norge's BCA could come under pressure if: (1) asset
quality were to deteriorate more than Moody's anticipates;
and/or (2) its risk profile increases, for example as a result of
increased exposures to more volatile sectors or increased involvement
in more risky operations such as capital market activities.
SpareBank 1 SR-Bank ASA
The outlook change to negative from stable on SpareBank 1 SR-Bank's
A1 senior debt and deposit ratings reflects Moody's expectation
that the bank's performance metrics come under increasing pressure,
owing to Norway's slowing growth. SpareBank 1 SR-Bank's
business is concentrated on the area around Stavanger, a logistics
centre to Norway's off-shore industry that faces the challenges
from reduced investments and lower oil prices. Direct exposure
to the oil sector accounted for 8.7% of exposure at default
at the end of 2015, and Moody's expects in particular the
offshore sector to be challenged over the next two years, driven
by a reduction in petroleum sector activity. While the bank's
oil-related portfolio performed well during 2015, exposure
to riskier segments, including the offshore sector, account
for 5.1% of SpareBank 1 SR-Bank's Exposure
at Default and Moody's expects further losses to arise from this
segment in the short to medium term. In addition, Moody's
considers that the bank's exposure to the commercial real estate
sector (accounting for 13% of total loans at the end of 2015) in
an geographical area that has witnessed high growth in the recent past
will remain subject to deterioration, as vacancy rates increase
following the ongoing slowdown in the region's economic activity.
However, the affirmation of SpareBank 1 SR-Bank's ratings
hinges on Moody's recognition that to date the bank's strong
asset quality has held up well, combined with supportive capital
metrics. These supportive factors are balanced against high reliance
on wholesale funding. The bank's corporate portfolio has
witnessed only limited deterioration during 2015, with problem loans
increasing to 0.9% of gross loans at end 2015 from 0.6%
in 2014. SpareBank 1 SR-Bank improved its core equity tier
1 ratio to 13.3%, compared to 11.5%
in 2014, well above the increased 11.5% regulatory
minimum effective from July 2016. While SpareBank 1 SR-Bank
benefits from solid access to domestic and international capital markets,
reliance on wholesale funding remains high, with market funds at
43% of tangible banking assets (including assets transferred to
covered bond companies), which renders the bank susceptible to potential
shifts in investor sentiment.
SpareBank 1 SR-Bank's debt and deposit ratings also reflect
the protection that creditors receive from the volume of senior unsecured
debt and subordination. These instruments benefit from a very low
LGF, as analysed using Moody's LGF framework (resulting in
a two-notch LGF uplift) and the rating agency's expectation
of moderate probability of government support (resulting in a one notch
of uplift on the bank's preliminary ratings).
Sparebanken Vest
The outlook change to negative from stable on Sparebanken Vest's
A1 senior debt and deposit ratings reflects Moody's expectation
that Norway's slowing growth, resulting from reduced petroleum
sector investments, will negatively impact asset quality.
The rating agency expects that the bank's exposure to the commercial
real estate sector (accounting for 12.3% of gross loans
at end-December 2015), a significant part of which is located
in the county of Rogaland in areas that have witnessed significant increases
in vacancy rates, will see deterioration. In addition,
Moody's considers the potential for growth in risk-weighted
assets as limited, taking into consideration that the bank's
leverage ratio, currently at 6.7%, is below
the Norwegian average of 8.7%, and that its core equity
tier 1 ratio will need to grow to reach a target of 14.5%
as suggested by Norway's regulator, Finanstilsynet.
However, the affirmation of Sparebanken Vest's ratings nevertheless
reflects the bank's strong asset performance to date and improved
capitalisation, balanced against its high reliance on capital market
funding. While Sparebanken Vest is located in Bergen in the western
part of Norway, an area that has witnessed an increase in unemployment
rates during 2015, the bank's loan portfolio has performed
strongly, with problem loans at 1.11% of gross loans
at the end of the year. Following a capital increase during 2015,
the bank has already improved its core equity tier 1 ratio to 13.7%,
compared to 12.2% in 2014, well above the increased
11.5% regulatory minimum effective from July 2016.
Although Sparebanken Vest benefits from solid access to local and international
capital markets, reliance on market funding remains high at 32.4%
of tangible banking assets, which renders the bank susceptible to
potential shifts in investor sentiment.
Sparebanken Vest's debt and deposit ratings also benefit from a
very low LGF for these instruments as analysed resulting in a two-notch
uplift, and the rating agency's expectation of moderate probability
of government support, resulting in one notch of uplift on the bank's
preliminary ratings.
Sparebanken Sor
The outlook change to negative from stable on Sparebanken Sor's
A1 issuer and deposit ratings reflects Moody's expectation that
Sparebanken Sor's asset performance will be negatively impacted
by Norway's slowing growth. Sparebanken Sor's exposure
to the construction and real estate sector (24% of gross loans
at end-December 2015) poses downside risks to future loan performance
as the operating environment weakens further. In addition,
Moody's expects the bank will reduce growth on risk-weighted
assets to 1-2% from 12% in 2015, which puts
further pressure on the bank's business as the bank intends to grow
its capital base in order to meet a 14.5% CET1 ratio by
the end of 2016 (as expected by Norway's FSA).
However, the affirmation of Sparebanken Sor's ratings primarily
reflects the bank's strong asset performance to date, and
improving capital metrics, balanced against reliance on capital
markets. The bank's corporate portfolio performed strongly
during 2015 with problem loans at 1.3% of gross loans compared
to 1.8% in 2014. Following a capital increase in
2016, the bank improved its core equity tier 1 ratio to 13.7%
compared to 13.1% in 2014, which is above the increased
11.5% regulatory minimum effective from July 2016.
While Sparebanken Sor has good access in the domestic capital markets,
Moody's expects the bank to continue accessing the international
markets in order to expand further its investor base beyond the more limited
and concentrated domestic market due to the bank's increased size
following the Sparebanken Sor-Pluss merger in 2013. Sparebanken
Sor's issuer and deposit ratings benefit from a very low LGF for
these instruments resulting in a two-notch rating uplift,
and the rating agency's expectation of moderate probability of government
support, resulting in a one notch of uplift on the bank's
preliminary ratings.
Sparebanken Sogn og Fjordane
As part of today's rating action Moody's assigned an A2 long-term
issuer rating to Sparebanken Sogn og Fjordane, in line with the
bank's deposit ratings, which were also affirmed. The
bank's issuer and deposit ratings also benefit from a very low LGF
for debt and deposits resulting in a two-notch rating uplifts.
The outlook change to negative from stable on Sparebanken Sogn og Fjordane's
A2 deposit and issuer ratings reflects Moody's expectation that
Norway's slowing growth resulting from reduced petroleum sector
investments will have a negative impact on Sparebanken Sogn og Fjordane's
profitability and asset quality. The bank's profitability
weakened significantly during 2015 driven mainly by losses in the bank's
liquidity book, in combination with renewed margin pressure and
higher corporate loan losses, trends that the rating agency expects
to continue in 2016. Moody's also expects Sparebanken Sogn
og Fjordane's exposure to the construction and real estate sector,
which accounted for 13% of total loans at end 2015, to lead
to further losses in the bank's portfolio.
However, the affirmation of Sparebanken Sogn og Fjordane ratings
reflects the bank's strong asset performance to date, and
improving capital metrics, balanced against reliance on the domestic
capital market. The bank's corporate portfolio witnessed
strong performance during 2015 with problem loans at 1.3%
of gross loans at the end of the year from 1.8% in 2014,
notwithstanding significant exposure to the volatile commercial real estate
sector. The bank increased its non-performing loan coverage
ratio to 65.2% from 28.7% in 2016.
Furthermore, the bank improved its capital base in 2015 reporting
a core equity tier 1 ratio of 13.7%, well above the
increased 11.5% regulatory minimum effective from July 2016.
While Sparebanken Sogn og Fjordane benefits from a strong deposit base,
accounting for nearly 60% of total funding, the bank is more
vulnerable to changes in investor sentiment due to its full dependency
on the concentrated domestic market.
SpareBank 1 SMN
The affirmation of SpareBank SMN's A1 senior debt and deposit ratings
reflect Moody's view that potential deterioration in asset quality
will be limited, and that currently strong earnings and capital
provide strong cushions. SpareBank SMN's baa1 BCA reflects
the bank's strong asset quality and capital metrics, balanced
against high reliance on market funding. The bank's corporate
portfolio witnessed strong performance during 2015 with problem loans
at 0.6% of gross loans at the end of the year from 0.5%
in 2014, notwithstanding exposures to the volatile commercial real
estate sector (accounting for 19% of the on balance sheet loans)
and the oil sector (accounting for 4.8% of Exposure at Default).
Furthermore, the bank improved its capital base in 2015 reporting
a core equity tier 1 ratio of 13.6%, compared to 11.2%
in 2014, well above the increased 11.5% regulatory
minimum effective from July 2016.
The stable outlook on SpareBank 1 SMN's ratings reflects Moody's
expectation that the bank's ratings are currently resilient to the
limited expected deterioration in its performance metrics (driven by Norway's
slowing growth resulting from reduced petroleum sector investments).
SpareBank 1 SMN's debt and deposit ratings also benefit from a very
low LGF for these instruments resulting in a two-notch rating uplift,
and the rating agency's expectation of moderate probability of government
support being forthcoming in the case of need, resulting in a one
notch uplift on the bank's preliminary ratings.
WHAT COULD CHANGE THE RATING UP/DOWN
SAVINGS BANKS: SPAREBANK 1 SR BANK, SPAREBANKEN VEST,
SPAREBANKEN SOR, SPAREBANKEN SOGN OG FJORDANE, SPAREBANK 1
SMN
Upward rating momentum is currently unlikely given the negative outlook
on four of the five savings banks affected by this rating action.
Over time, upward pressure could develop if these banks demonstrate:
(1) reduced exposure to more volatile sectors such as the oil and commercial
real estate related sectors; (2) diversified access to capital markets
and improved liquidity; and/or (3) stronger earnings generation without
an increase in risk profiles.
Downward rating pressure would develop on these banks ratings if:
(1) Moody's expects their problem loan ratios to increase above
its current system-wide expectation of approximately 2%;
(2) profitability deteriorates further from expected levels; (3)
the banks fail to sustain their market position; and/or (4) the macroeconomic
environment deteriorates more than currently anticipated, leading
to more challenging operating conditions and reduced profitability.
LIST OF AFFECTED RATINGS
Issuer: DNB Bank ASA
..Upgrades:
....Senior Unsecured Medium-Term Note
Program, upgraded to (P)Aa2 from (P)Aa3
....Senior Unsecured Regular Bond/Debenture,
upgraded to Aa2 negative from Aa3 stable
..Affirmations:
.... Long-term Counterparty Risk Assessment,
affirmed Aa1(cr)
.... Short-term Counterparty Risk Assessment,
affirmed P-1(cr)
.... Long-term Deposit Ratings,
affirmed Aa2, outlook changed to negative from stable
.... Subordinate Regular Bond/Debenture,
affirmed Baa1 (hyb)
.... Subordinate Medium-Term Note Program,
affirmed (P)Baa1
.... Pref. Stock Non-cumulative
Preferred Stock, affirmed Baa3 (hyb)
.... Short-term Deposit Ratings,
affirmed P-1
.... Commercial Paper, affirmed P-1
.... Other Short Term, affirmed (P)P-1
.... Adjusted Baseline Credit Assessment,
affirmed a3
.... Baseline Credit Assessment, affirmed
a3
..Outlook Actions:
....Outlook, changed to negative from
stable
Issuer: DNB Bank ASA, New York Branch
..Affirmations:
.... Long-term Deposit Rating,
Affirmed Aa2, outlook changed to negative from stable
.... Short-term Deposit Rating,
affirmed P-1
.... Other Short-term, affirmed
P-1
..Outlook Actions:
....Outlook, changed to negative from
stable
Issuer: Den norske Bank ASA
..Upgrades:
.... Senior Unsecured Medium-Term Note
Program, upgraded to (P)Aa2 from (P)Aa3
..Affirmations:
.... Subordinate Medium-Term Note Program,
affirmed (P)Baa1
.... Other Short Term, affirmed (P)P-1
..Outlook Actions:
....Outlook, changed to negative from
stable
Issuer: Nordea Bank Norge ASA
..Affirmations:
.... Adjusted Baseline Credit Assessment,
affirmed a3
.... Baseline Credit Assessment, affirmed
a3
.... Counterparty Risk Assessment, affirmed
Aa2(cr)
.... Counterparty Risk Assessment, affirmed
P-1(cr)
.... Short-term Deposit Rating,
affirmed P-1
.... Senior Unsecured Regular Bond/Debenture,
affirmed Aa3 stable
.... Long-term Deposit Rating,
affirmed Aa3 stable
..Outlook Actions:
....Outlook, remains stable
Issuer: SpareBank 1 SR-Bank ASA
..Affirmations:
.... Long-term Counterparty Risk Assessment,
affirmed Aa3(cr)
.... Short-term Counterparty Risk Assessment,
affirmed P-1(cr)
.... Long-term Deposit Ratings,
affirmed A1, outlook changed to negative from stable
.... Junior Subordinate Medium-Term
Note Program, affirmed (P)Baa3
.... Subordinate Regular Bond/Debenture,
affirmed Baa2/Baa2(hyb)
.... Subordinate Medium-Term Note Program,
affirmed (P)Baa2
.... Senior Unsecured Regular Bond/Debenture,
affirmed A1, outlook changed to negative from stable
.... Senior Unsecured Medium-Term Note
Program, affirmed (P)A1
.... Long-term Issuer Rating,
affirmed A1, outlook changed to negative from stable
.... Short-term Deposit Ratings,
affirmed P-1
.... Adjusted Baseline Credit Assessment,
affirmed baa1
.... Baseline Credit Assessment, affirmed
baa2
..Outlook Actions:
....Outlook, changed to negative from
stable
Issuer: Sparebanken Vest
..Affirmations:
.... Adjusted Baseline Credit Assessment,
affirmed baa1
.... Baseline Credit Assessment, affirmed
baa1
.... Long-term Counterparty Risk Assessment,
affirmed Aa3(cr)
.... Short-term Counterparty Risk Assessment,
affirmed P-1(cr)
.... Short-term Deposit Ratings,
affirmed P-1
.... Senior Unsecured Medium-Term Note
Program, affirmed (P)A1
.... Other Short-term, affirmed
(P)P-1
.... Junior Subordinate Medium-Term
Note Program, affirmed (P)Baa3
.... Subordinate Medium-Term Note Program,
affirmed (P)Baa2
.... Senior Unsecured Regular Bond/Debenture,
affirmed A1, outlook changed to negative from stable
.... Long-term Deposit Ratings,
affirmed A1, outlook changed to negative from stable
..Outlook Actions:
....Outlook, Changed To Negative From
Stable
Issuer: Sparebanken Sor
..Affirmations:
.... Long-term Counterparty Risk Assessment,
affirmed Aa3(cr)
.... Short-term Counterparty Risk Assessment,
affirmed P-1(cr)
.... Long-term Deposit Ratings,
affirmed A1, outlook changed to negative from stable
.... Long-term Issuer Ratings,
affirmed A1, outlook changed to negative from stable
.... Short-term Deposit Ratings,
affirmed P-1
.... Adjusted Baseline Credit Assessment,
affirmed baa1
.... Baseline Credit Assessment, affirmed
baa1
..Outlook Actions:
....Outlook, changed to negative from
stable
Issuer: Sparebanken Sogn og Fjordane
..Assignments:
.... Long-term Issuer Ratings,
assigned A2 negative
..Affirmations:
.... Long-term Counterparty Risk Assessment,
affirmed A1(cr)
.... Short-term Counterparty Risk Assessment,
affirmed P-1(cr)
.... Long-term Deposit Ratings,
affirmed A2, outlook changed to negative from stable
.... Short-term Deposit Ratings,
affirmed P-1
.... Adjusted Baseline Credit Assessment,
affirmed baa1
.... Baseline Credit Assessment, affirmed
baa1
..Outlook Actions:
....Outlook, changed to negative from
stable
Issuer: SpareBank 1 SMN
..Affirmations:
.... Long-term Counterparty Risk Assessment,
affirmed Aa3(cr)
.... Short-term Counterparty Risk Assessment,
affirmed P-1(cr)
.... Long-term Deposit Ratings,
affirmed A1 stable
.... Senior Unsecured Regular Bond/Debenture,
affirmed A1 stable
.... Senior Unsecured Medium-Term Note
Program, affirmed (P)A1
.... Subordinate Regular Bond/Debenture,
affirmed Baa2 (hyb)
.... Subordinate Medium-Term Note Program,
affirmed (P)Baa2
.... Junior Subordinate Medium-Term
Note Program, affirmed (P)Baa3
.... Long-term Issuer Rating,
affirmed A1 stable
.... Short-term Deposit Ratings,
affirmed P-1
.... Adjusted Baseline Credit Assessment,
affirmed baa1
.... Baseline Credit Assessment, affirmed
baa1
..Outlook Actions:
....Outlook, remains stable
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Banks published in
January 2016. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Moody's considers a rated entity or its agent(s) to be participating
when it maintains an overall relationship with Moody's. On
this basis DNB Bank ASA or their agents are considered to be participating
entities. These rated entities or their agents generally provide
Moody's with information for their ratings process.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Efthymia Tsotsani
Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Sean Marion
Managing Director
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's Takes Rating Actions on Seven Norwegian Banks
