Actions conclude methodology-related review and revision of government support considerations
NOTE: On December 30, 2015, the press release was corrected as follows: In the eighth paragraph of the REGULATORY DISCLOSURES section, changed the participating rated entity in unsolicited credit ratings disclosures to: “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 rated entities Nordea Bank AB, SEB 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”. Revised release follows.
NOTE: On December 18, 2015, the press release was corrected as follows: in the list of affected ratings, for issuer Stadshypotek AB, changed “Backed Short-Term Commercial Paper, Affirmed P-1” to “Short-Term Commercial Paper, Affirmed P-1.” Revised release follows.
London, 17 June 2015 -- Moody's Investors Service has today concluded its rating reviews on six
Nordic banks and their subsidiaries. These reviews were initiated
on 17 March 2015 following the publication of Moody's revised bank
methodology (see "Rating Methodology: Banks," 16 March 2015,
available at moodys.com) and include revisions to Moody's
government support assumptions for these banks.
In light of the revised bank rating methodology, Moody's rating
actions on these six banking groups generally reflect the following considerations:
(1) their "Strong +" to "Very Strong -" macro
profiles; (2) the banks' healthy and strengthened core financial
ratios; (3) the protection offered to depositors and senior creditors,
as captured by Moody's Advanced Loss Given Failure (LGF) liability analysis,
reflecting the benefit of instrument volume and subordination protecting
creditors from losses in the event of resolution; and (4) Moody's
view of the likelihood of government support for these institutions.
For its own business reasons, Moody's has withdrawn the outlooks
for all of the junior instrument ratings. Please refer to "Moody's
Investors Service's Policy for Withdrawal of Credit Ratings", available
at moodys.com. Outlooks, which indicate the direction
of any rating pressures, are now assigned only to long-term
senior debt and deposit ratings. All of the affected banks' long-term
senior debt and deposit ratings carry stable outlooks.
For more information on the revised bank rating methodology, please
see Moody's press release at http://www.moodys.com/viewresearchdoc.aspx?docid=PR_321005
The full list of affected ratings is provided at the end of the press
release.
RATINGS RATIONALE
The revised methodology includes a number of elements that Moody's has
developed to help accurately predict bank failures and determine how each
creditor class is likely to be treated when a bank fails and enters resolution.
These new elements capture insights gained from the crisis and the fundamental
shift in the banking industry and its regulation.
1) THE "STRONG +" TO " VERY STRONG-"
BANK-SPECIFIC MACRO PROFILES
The Macro Profiles for the banks are "Very Strong -" for operations
in Sweden (Aaa stable) and Norway (Aaa stable) and "Strong +"
for Denmark (Aaa stable) and Finland (Aaa negative), reflecting
high economic, institutional and government financial strength.
The Macro Profile constitutes an assessment of the macroeconomic environment
in which a bank operates. Given the geographic scope of their operations,
these Nordic banking groups are exposed to macroeconomic variables across
multiple countries within Europe as most of them have a substantial portion
of their exposures in markets other than their home countries.
For most banks, the bank-specific Macro Profiles are in line
with country-specific Macro Profile scores for the countries in
which these banks are headquartered, given that the majority of
the operations are within the banks' home countries as well as in
areas with similar macroeconomic conditions, with only limited exposures
in countries with weaker profiles.
2) CORE FINANCIAL METRICS
The BCAs of these six banks and their subsidiaries range from a2 to baa3,
reflecting core financial metrics, including aggregate problem loan
ratios that are among the lowest in Europe for Norwegian and Swedish banks,
and improving metrics for Danish banks. The BCAs also reflect strong
capital buffers, and stable profitability metrics with a strong
focus on cost management. The differentiation in BCAs reflects
both variances in financial performance over the recent period and Moody's
forward-looking expectations for the individual banks.
See below for outlines of the analytical considerations for the individual
banks covered in this press release.
3) PROTECTION OFFERED TO SENIOR CREDITORS, AS CAPTURED BY MOODY'S
ADVANCED LOSS GIVEN FAILURE (LGF) LIABILITY ANALYSIS
Moody's applies its Advanced LGF analysis to banks in the Nordic countries
as Moody's expects all four countries to introduce operating resolution
regimes. The LGF analysis leads to one to two notches of uplift
from the banks' adjusted BCA reflecting differences in the banks'
liability structures in terms of the amount of bail-in-able
liabilities and resulting loss severity on different instruments.
This analysis represents a range of "very-low" to "low"
loss given failure for long-term deposits and senior debt,
taking into account the protection offered by the banks' sizeable
volumes of deposits and the amount of debt subordinated to both senior
debt and deposits. For the Nordea Bank and Danske Bank groups,
Moody's Advanced LGF analysis reflects the high probability of a
Single Point of Entry (SPE) resolution approach given these banks'
pan-Nordic organisation structures and the cooperation amongst
the Nordic national regulators. This results in one notch of LGF
uplift for the long term senior unsecured debt and deposit ratings of
Danske Bank A/S and its Finnish subsidiary Danske Bank plc, and
two notches of LGF uplift for Nordea Bank AB and its Nordic subsidiaries.
4) LIKELIHOOD OF GOVERNMENT SUPPORT
In addition to the impact of the new aspects of the methodology on the
banks' ratings, Moody's has also lowered its expectations
about the degree of support that individual Nordic governments might provide
in a stress scenario. The main trigger for this reassessment is
the introduction of the Bank Recovery and Resolution Directive (BRRD)
in the European Union (in January 2015). However, the impact
on ratings is moderated -- and in some cases wholly or more
than offset -- by the aforementioned decline in expected
loss assumptions under the new LGF framework. The six banking groups
covered in this press release are all among the market leaders in their
respective home markets with lending and deposit market shares in excess
of 10%. Moody's consider these banks to have a high
degree of importance to the financial stability of their individual markets
and therefore their ratings incorporate a moderate degree of support resulting
in one notch of government support uplift.
Moody's expects that Norway, as a non-EU member,
will also introduce bank resolution legislation similar to the BRRD.
However, Moody's considers Norway to have more flexibility
in terms of supporting banks, and hence assesses the probability
of government support for DNB Bank as "high", resulting
in two notches of government support uplift for senior debt and deposit
ratings.
STABLE OUTLOOKS
The stable outlooks on the banks' long-term senior debt and deposit
ratings reflect Moody's view that recent strengthening in banks' financials
will be sustained over the next 12-18 months and that individual
banks remain well positioned to weather headwinds posed by low interest
rates, intense competition and margin pressures.
ASSIGNMENT OF COUNTERPARTY RISK ASSESSMENTS
Moody's has also assigned CR Assessments to these six banks and their
subsidiaries. CR Assessments are opinions of how counterparty obligations
are likely to be treated if a bank fails, and are distinct from
debt and deposit ratings in that they (1) consider only the risk of default
rather than expected loss and (2) apply to counterparty obligations and
contractual commitments rather than debt or deposit instruments.
The CR Assessment is an opinion of the counterparty risk related to a
bank's covered bonds, contractual performance obligations (servicing),
derivatives (e.g., swaps), letters of credit,
guarantees and liquidity facilities.
The CR Assessment takes into account the issuer's standalone strength
as well as the likelihood of affiliate and government support in the event
of need, reflecting the anticipated seniority of these obligations
in the liabilities hierarchy. The CR Assessment also incorporates
other steps authorities can take to preserve the key operations of a bank,
should it enter a resolution.
The CR Assessment is positioned, prior to government support,
above the banks' Adjusted BCAs, based on the cushion against
default provided to the senior obligations by subordinated instruments.
The main difference with Moody's Advanced LGF approach used to determine
instrument ratings is that the CR Assessment captures the probability
of default on certain senior obligations, rather than expected loss,
therefore Moody's focuses purely on subordination and does not take
into account the volume of the instrument class.
The CR Assessments also benefit from government support in line with Moody's
support assumptions on deposits and senior unsecured debt. This
reflects Moody's view that any support provided by governmental
authorities to a bank, which benefits senior unsecured debt or deposits
is very likely to benefit operating activities and obligations reflected
by the CR Assessment as well, consistent with Moody's belief
that governments are likely to maintain such operations as a going-concern
in order to reduce contagion and preserve a bank's critical functions.
As a result, five of the six banks' CR Assessments benefit
from one notch of government support uplift, while DNB Bank's
CR Assessment benefits from two notches of government support.
BANK SPECIFIC ANALYTICAL FACTORS
--- Danske Bank A/S
Moody's has affirmed Danske Bank's baa1 BCA and upgraded its
long-term senior unsecured debt and deposit ratings to A2.
The affirmation of Danske Bank's standalone BCA of baa1 reflects
the progressive strengthening of the bank's performance in recent
years, including improvements in asset quality and capitalisation.
The bank manages a balanced and well-diversified lending portfolio,
generating a significant volume of recurring earnings. These strengths
are balanced against (1) Danske Bank's below-peer profitability
and hence weaker capacity to build capital and earnings buffers;
and (2) relatively high earnings volatility.
Moody's expects the positive recent trend in Danske Bank's
problem loan-levels to continue in the coming 12-18 months,
triggering further reductions in loan loss provisions and improvements
in profitability. In line with the wind-down of Danske Bank's
non-core loan book in Ireland (Baa1 stable), problem loans
fell to 3.7% of gross loans at end-March 2015,
from 4.2% at end-2013.
Danske Bank's capital ratios have also improved, increasing
its ability to absorb potential future losses. At end-March
2015, the Tier 1 ratio and total capital ratios stood at 16.2%
and 18.4%, respectively. On a nominal leverage
basis, tangible common equity (TCE) stood at 4.4%
of total assets.
With net income in the period 2012-14 averaging 0.25%
of tangible assets, Danske Bank's earnings capacity remains
below those of its peers. While improving to 0.32%
in 2014, Moody's expects earnings to remain below those of
its peers, reflecting Denmark's modest, albeit improving,
growth environment, and margin pressure in the low interest-rate
environment.
The upgrade of Danske Bank's long-term senior unsecured debt
and deposit ratings to A2 takes into account the bank's baa1 BCA,
Moody's view of a very low loss given failure on these instruments
resulting in one notch of LGF uplift, and a moderate assessment
of government support which translates into one notch of rating uplift.
The LGF analysis assesses the banking group's own volume of deposits and
debt, and the volume of securities subordinated to them in Moody's
creditor hierarchy.
Moody's applies its Advanced LGF analysis on the consolidated total
banking group including the Finnish operations, and thereby assumes
an SPE resolution across the group's Nordic operations. Moody's
considers that the bank's highly interconnected group structure
and cooperation between national regulators make a cross-border
resolution probable, implying the equal treatment of creditors of
Danske Bank A/S and those of its Finnish subsidiary Danske Bank plc.
Danske Bank is Denmark's largest financial institution, and
is the market leader in most financial products. As such,
Moody's sees a moderate probability of government support for Danske
Bank, resulting in one notch of government support uplift in the
bank's A2 long- term senior unsecured debt and deposits.
WHAT COULD CHANGE THE RATINGS UP/DOWN
Upward pressure on the rating might develop from a continuation of the
recent strengthening trends in financial performance, including
(1) stronger profitability from core earnings, without an increase
in its risk profile; and (2) improved asset-quality metrics,
especially in more volatile segments, such as agriculture and commercial
real estate (CRE).
Downward rating pressure would emerge if (1) any renewed pressure on asset
quality emerges, particularly in Denmark; (2) there are indications
that Danske Bank will not deliver the anticipated improvement in profitability;
or (3) the improvements achieved in recent years are not sustainable.
++++++++++++++++++++++++++++
--- Danske Bank Plc
Moody's has affirmed Danske Bank Plc's baa1 BCA and confirmed
the bank's A2 long-term senior unsecured and deposit ratings.
The affirmation of Danske Bank Plc's standalone BCA of baa1 reflects
the bank's solid market position as Finland's third-largest
bank, stable earnings generation and sound asset quality.
Danske Bank Plc's profitability is relatively low. However,
Moody's expects that the implementation of restructuring measures
to improve cost efficiency and profitability, set against the low
pace of economic growth in the country, will drive a positive trend
in profits.
Moody's applies its Advanced LGF analysis on the total banking group,
including the Finnish operations, as it assumes an SPE resolution.
Danske Bank is subject to the BRRD and Moody's expects resolution
to take place with a SPE approach. Therefore, Moody's
performs the LGF analysis on the consolidated balance sheet of Danske
Bank group. Moody's LGF analysis for Danske Plc indicates
a low loss-given failure, resulting in one-notch uplift
from the bank's adjusted BCA to the long-term deposits and
to senior unsecured ratings. The LGF analysis assesses the banking
group's own volume of deposits and debt, and the volume of securities
subordinated to them in Moody's creditor hierarchy, which together
offset the decrease in government support assumptions.
As with its parent, Danske Bank A/S, Moody's continues
to believe that the probability of government support for Danske Bank's
plc long-term deposits and senior unsecured debt is moderate,
resulting in a one-notch uplift included in the bank's A2
long-term senior unsecured debt and deposit ratings.
WHAT COULD CHANGE THE RATINGS UP/DOWN
Upward pressure on the rating might develop if the bank is able to strengthen
its earnings generation without increasing its risk profile.
Downward rating pressure would emerge if (1) the bank's profitability
deteriorates; (2) its asset quality deteriorates; 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.
++++++++++++++++++++++++++++
-- DNB Bank ASA
Moody's has upgraded DNB Bank's BCA to a3 from baa1,
the long-term senior unsecured debt rating to Aa3 from A1 and the
deposit ratings to Aa2 from A1.
The upgrade of the DNB Bank's BCA to a3 from baa1 is driven by recent
improvements in the bank's asset quality and profitability,
along with strengthening risk-weighted capitalisation. However,
DNB's reliance on market funding offsets these credit positive factors.
Despite headwinds from the impact of lower oil prices on the Norwegian
economy, Moody's expects that DNB's asset quality will
remain resilient, owing to the resilience of DNB's retail
and large corporate customers. Problem loans levels have reduced
to 1.6% of gross loans at end-March 2015, compared
to 1.9% at end-2014. That said, DNB's
shipping and CRE exposures remain sizeable, and carry higher credit
risks; alongside high borrower concentrations, these increase
vulnerability in cyclical downturns.
Asset-quality performance metrics have been resilient and Moody's
considers DNB's core earnings to be sound. Net income to
tangible assets has been steadily increasing over the last three years
to 0.9% in 2014 from 0.6% in 2012.
DNB's cost-to-income ratio remains among the strongest in
its European peer group with a three-year average of 46%,
reflecting rigorous cost control. In Moody's opinion,
the slowing of Norway's growth following reduced oil investments
will have a slightly negative impact on DNB's earnings.
In line with its domestic and international peers, the bank has
increased its capital buffers: the TCE-RWAs ratio was 14.2%
at end-March 2015, up from 12.3% at end-2013.
While DNB benefits from a solid deposit base and good access to local
and international capital markets, reliance on market funding is
high (market funds stood at 41% of tangible banking assets at end-March).
The upgrade of the bank's deposit rating to Aa2 from A1 and of the senior
unsecured debt rating to Aa3 from A1 takes into account (1) the adjusted
BCA upgrade to a3; (2) the LGF analysis of the bank's own volume
of deposits and debt, and the volume of the securities subordinated
to them; and (3) Moody's expectation of a high probability
of government support. Taking into account the Norwegian government's
34% ownership of the bank, Moody's government support
assessment translates into two notches of support uplift. While
Moody's expects Norway to introduce bank resolution legislation
in the coming years, the rating agency believes that Norway,
as a non-EU European Economic Area (EEA) member with substantial
government wealth, will have more flexibility in dealing with bank
resolutions compared with EU states.
DNB benefits from a large volume of deposits and substantial layers of
subordination, resulting in very low loss given failure for deposits
and two notches of LGF uplift. The senior unsecured ratings benefit
from a low loss-given-failure rate because of a moderate
volume of senior unsecured debt and subordination, resulting in
a one notch LGF uplift. Going forward, Moody's will
consider how DNB's planned additional bail-in-able
debt issuance weighs against maturing debt.
WHAT COULD MOVE THE RATINGS UP/DOWN
A limited amount of upwards rating momentum could develop if DNB (1) further
reduces its asset vulnerability, especially in relation to historically
more volatile segments such as shipping and CRE; (2) maintains stronger
and more stable earnings generation without increasing its risk profile;
and (3) preserves sustained, good access to capital markets.
Downwards pressure on the ratings could develop if (1) DNB's financing
conditions were to become difficult; (2) its asset quality were to
deteriorate; 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 believes that downward pressure could
be exerted on the ratings because of external factors, such as substantially
adverse developments in the Norwegian real-estate market.
++++++++++++++++++++++++++++
--Nordea Bank AB
Moody's has affirmed Nordea Bank AB's a3 BCA and confirmed
the bank's Aa3 long-term senior unsecured debt and deposit
ratings.
The affirmation of Nordea Bank AB's a3 standalone BCA reflects the banking
group's distinctive and diverse footprint throughout the Nordic area,
a resilient earnings pattern, good operational efficiency and healthy
asset-quality metrics. These positive factors are counterbalanced
by Nordea's high reliance on market funding.
Nordea commands double-digit market shares as a leading bank in
each of the Nordic economies. The bank's diversified footprint
and business lines have benefited income stability and asset quality.
On a three-year average basis at end-March 2015, net
income stood at 0.6% of tangible assets and problem loans
amounted to just below 2%. Balanced against this strong
performance, Moody's notes that Nordea's reliance on
market funding exposes the bank to changes in market confidence.
The confirmation of Nordea Bank AB's Aa3 deposit and senior unsecured
debt ratings takes into account (1) Nordea Bank's a3 adjusted BCA;
(2) a very low loss given failure for these instruments as analysed using
the rating agency's LGF framework resulting in a two-notch
LGF uplift; and (3) a moderate probability of government support
translating into one notch government support uplift.
The LGF analysis assesses the banking group's own volume of deposits and
debt, and the volume of securities subordinated to them in Moody's
creditor hierarchy, which together offset the decrease in government
support assumptions.
Moody's applies its Advanced LGF analysis on the consolidated balance
sheet of Nordea Group as the rating agency considers that an SPE resolution
approach is probable across the Nordic countries in which Nordea operates.
Moody's expects that Nordea's highly interconnected group
structure and organisation, and the established level of cooperation
amongst the Nordic national resolution authorities will enable cross-border
resolution, implying equal treatment of creditors of Nordea Bank
AB and those of its three main foreign subsidiaries in Finland,
Denmark and Norway.
Moody's has aligned the Adjusted BCA of Nordea's subsidiaries
with the a3 group BCA. In Moody's opinion, the support
that the subsidiaries receive continues to be captured through (1) these
entity's BCAs; and (2) rating uplift owing to the group-wide
two-notch LGF uplift.
As a result of affiliate support and the SPE resolution approach that
Moody's has used to analyse LGF for the Nordea group, the
deposit, senior unsecured debt and junior instruments ratings of
Nordea Bank Finland Plc, Nordea Bank Danmark A/S and Nordea Bank
Norge ASA are aligned to those of Nordea Bank AB, in line with the
SPE resolution approach.
WHAT COULD CHANGE THE RATING UP/DOWN
A limited amount of upward rating momentum could develop if the Nordea
group and its subsidiaries demonstrate (1) reduced reliance on (short-term)
market funds; (2) long-term stability in its asset performance,
including reduced single-name concentrations in its loan book;
and/or (3) stronger earnings generation, without a material increase
in risk profile.
The current stable outlooks assigned to the ratings of the Nordea group
and its subsidiaries indicates a low likelihood of downward pressure on
the ratings. However, downward pressure could develop if
these banks' financing conditions were to become more difficult,
asset quality were to deteriorate and/or risk profiles increase,
for example as a result of increased exposures to more volatile sectors
or increased involvement in more risky operations such as capital market
activities.
++++++++++++++++++++++++++++
--Nordea Bank Danmark A/S
Moody's has affirmed Nordea Bank Danmark's baa1 BCA, downgraded
the Adjusted BCA to be aligned with the group BCA at a3, and upgraded
the bank's long-term senior unsecured debt and deposit ratings
to Aa3 from A1.
The affirmation of Nordea Bank Danmark's baa1 BCA reflects the bank's
solid business franchise as Denmark's second-largest banking group,
its strong integration in the Nordea Group, and its relatively stable
core earnings, underpinned by a sizeable retail portfolio.
These positive credit factors are counterbalanced by (1) the bank's reliance
on market funding, which makes it sensitive to swings in investor
and market sentiment; (2) weakened profitability and efficiency metrics
compared with those of the overall group; and (3) exposure to the
historically more volatile Danish agriculture and real-estate sectors.
++++++++++++++++++++++++++++
--Nordea Bank Finland Plc
Moody's has affirmed Nordea Bank Finland's a3 BCA and confirmed
the bank's Aa3 long-term senior unsecured debt and deposit
ratings.
The affirmation of Nordea Bank Finland's a3 BCA reflects the bank's valuable
and defensible business franchise in Finland as one of the country's leading
banks, its strong integration in the Nordea Group and its sound
capital levels. However, the BCA is constrained by the bank's
reliance on market funding, which makes it sensitive to swings in
investor and market sentiment, relatively low profitability metrics
and risks associated with its large derivatives book.
++++++++++++++++++++++++++++
-- Nordea Bank Norge ASA
Moody's has upgraded Nordea Bank Norge's BCA to a3 from baa1,
downgraded the Adjusted BCA to be aligned with the group BCA at a3,
and confirmed the bank's Aa3 long-term senior unsecured debt
and deposit ratings.
The upgrade of Nordea Bank Norge's BCA reflects (1) the bank's solid business
franchise as Norway's second-largest financial institution;
(2) its strong integration in the Nordea Group; and (3) its sizeable
retail portfolio and improvements in the global shipping market,
which have underpinned the improvement in asset quality.
++++++++++++++++++++++++++++
-- SEB
Moody's has upgraded SEB's BCA to a3 from baa1 and the long-term
senior unsecured debt and deposit ratings to Aa3 from A1.
The bank's improved asset quality and re-occurring earnings,
a good degree of revenue diversification across its main activities and
increased efficiency are the main drivers of the BCA upgrade. However,
higher earnings sensitivity to capital market activities counterbalance
these positive credit factors.
The efforts of SEB management to continuously focus the bank on core operations
since the global financial crisis has led to steady improvements in asset
quality, illustrated by a decline in the bank's gross problem
loan ratio (as defined by Moody's) to 1.3% in 2014
from 1.5% in 2011. Net income to tangible assets
has been steadily increasing since 2009 (0.7% at end-March
2015 compared to 0.2% at end-2009), also underpinned
by the bank's strong and wealth-management franchise.
Moreover, Moody's also notes that earnings volatility has
shown a reducing trend in recent years.
SEB's franchise as leading merchant bank positions the bank well
to continue to grow in the current low interest-rate environment.
However, it also leads to more cyclical earnings than the more retail-focused
peers, high borrower concentration risks and a reliance on market
funding, which constrain the rating. However, Moody's
positively notes the bank's structural shift towards an increasing
contribution of the more stable retail franchise in recent years.
The upgrade of the bank's deposit and senior unsecured debt rating to
Aa3 from A1 takes into account the higher BCA, the LGF analysis
of the bank's own volume of deposits and debt, and the volume of
securities subordinated to them in Moody's creditor hierarchy, which
together offset the decrease in government support assumptions.
SEB benefits from a large volume of deposits and substantial layers of
subordination, resulting in very low loss given failure and two
notches of LGF uplift. This liability-side analysis offsets
Moody's decision to decrease the bank's government support assumptions
to "moderate", leading to one notch of support uplift, from
"very high" and two notches.
WHAT COULD MOVE THE RATING UP/DOWN
A limited amount of upward rating momentum could develop on SEB and SEB
AG's BCAs if (1) SEB demonstrates continued further improvement
in the core earnings, without increasing its risk profile;
and/or (2) further sustained lengthening of its funding maturity profile,
combined with an increasing share of deposit funding and strong liquidity
levels.
Downward rating pressure could develop if (1) there is significant macroeconomic
deterioration in the group's main operating markets; (2) the
bank's reliance on market funding increases; (3) there are
signs of pressure on profits, which could primarily arise from weakening
economic stability and franchise value; and/or (4) its risk profile
increases, owing to increased exposures to more volatile sectors
and earnings streams.
++++++++++++++++++++++++++++
-- SEB AG
Moody's has upgraded SEB AG's BCA to baa3 from ba1,
its adjusted BCA to a3 from baa1, and its long-term senior
unsecured debt and deposit ratings to A2 from Baa1.
The bank's improving recurring earnings is the primary driver of
the upgrade of SEB AG's BCA. Profitability and efficiency
remain weak, but restructurings in recent years have led to some
improvements in these areas. The BCA also reflects the bank's
small franchise with a focus on corporate banking in Germany (Aaa stable),
adequate capital levels, good credit quality and the solid integration
of liquidity management and funding within the SEB group. However,
SEB AG's high CRE exposure, single-name credit-risk
concentrations, and historically volatile earnings counterbalance
the positive credit factors.
The upgrade of SEB AG's adjusted BCA to a3 from baa1 reflects the very
high likelihood of affiliate support from its parent, SEB (BCA of
a3), in the event of failure. This is consistent with three
notches of affiliate support.
The upgrade of the bank's deposit rating to A2 from Baa1 takes into account
both the upgrade of the adjusted BCA and the LGF analysis of the bank's
own volume of deposits, and the volume of securities subordinated
to them in Moody's creditor hierarchy. SEB AG benefits from a large
volume of deposits, but bail-in-able liabilities below
deposits are limited, resulting in a low loss given failure and
one notch of LGF uplift from the bank's adjusted BCA. For
SEB AG, Moody's continues to believe that the potential for
government support is low, because of the bank's low market share
in Germany (less than 1% of lending). As a result,
the bank deposit ratings do not include any government support uplift.
++++++++++++++++++++++++++++
--Svenska Handelsbanken
Moody's has upgraded Svenska Handelsbanken's BCA to a2 from
a3 and the bank's long-term senior unsecured debt and deposit
ratings to Aa2 from Aa3.
The upgrade of Handelsbanken's BCA to a2 from a3 reflects Moody's
expectation that asset quality will remain strong as the bank expands
beyond its Swedish core franchise, that earnings will remain stable
in the low interest-rate environment and that capital buffers will
remain solid as industry-wide pressure to increase dividend payouts
mount. The BCA is constrained by the bank's high reliance
on market funding, which renders the bank more vulnerable to investor
sentiment.
Moody's considers that Handelsbanken has shown exemplary long-term
governance and stewardship, underpinned by the bank's decentralized
organizational structure, cautious risk incentive system and fully
deferred, equitable profit sharing to employees. Handelsbanken's
asset quality has remained exceptionally solid and stable over the past
decade, with problem loans peaking at 0.7% of gross
loans in 2010. Moody's believes that the bank has similarly
applied its conservative underwriting practices to its rapid expansion
in the UK (Aa1 stable) over the last five years. The upgrade also
takes into account the proven stability in Handelsbanken's earnings,
with net income standing at 0.55% of tangible assets at
end-March 2015. The bank's ability to generate income
at low costs sets it apart from industry peers: its cost-to-income
ratio stood at 46% at end-March 2015.
In recent years, the bank's capital ratios have increased
as lower risk weights in internal rating-based models were introduced.
Nominal leverage ratios are more limited, also reflecting the bank's
large market share in lower-risk Swedish mortgages: TCE stood
at 3.9% of tangible banking assets at end-March 2015.
Notwithstanding the above, Moody's considers that the unprecedented,
rapid expansion of the Swedish bank-centric model abroad increases
the bank's risk of unforeseen profitability and risk-management
issues. This risk is exacerbated by the bank's reliance on
market funding, which accounted for 54% of tangible banking
assets at end-2014.
The upgrade of Handelsbanken's senior debt and deposit ratings to
Aa2 takes into account the upgrade of the BCA and adjusted BCA to a2,
Moody's view of a very low loss given failure on these instruments
resulting in two notches of LGF uplift, and a moderate assessment
of government support, which translates into one notch of rating
uplift. The LGF analysis assesses the banking group's own volume
of deposits and debt, and the volume of securities subordinated
to them in Moody's creditor hierarchy, which together offset the
decrease in government support assumptions.
WHAT COULD CHANGE THE RATING -- UP/DOWN
Moody's would expect any upward pressure on the BCA to be preceded
by a material reduction of reliance on market funding, which,
however, could negatively impact the LGF assessment. In addition,
Moody's would consider a reduction of the bank's sector concentrations
as credit positive.
Given the upgrade of Handelsbanken's BCA, long-term deposits,
senior unsecured ratings, Moody's believes there is a low
likelihood for a downward change in ratings in the near-term.
Nevertheless, deteriorating asset quality, including from
the bank's UK expansion, could exert downward pressure on
the ratings.
++++++++++++++++++++++++++++
--Swedbank
Moody's has upgraded Swedbank's BCA to a3 from baa1 and the
bank's long-term senior unsecured debt and deposit ratings
to Aa3 from A1.
The upgrade of Swedbank's BCA to a3 from baa1 reflects Moody's
expectation that Swedbank's strong asset quality and stable earnings
generation, underpinned by its focused management and established
franchise in Sweden and the Baltic countries, position the bank
well to manage challenges coming from the low interest-rate environment,
developments in mobile banking, and competition in historically
more profitable activities, including asset management. Moody's
in addition notes that Swedbank's reliance on market funding remains
high, which renders the bank more vulnerable to shifts in investor
sentiment.
Moody's expects that Swedbank will remain focused on its core markets
and manage its asset quality with greater oversight, now that the
bank has resolved its legacy challenges in Eastern Europe. At end-March
2015, Sweden accounted for 86% of the loan book, and
Swedbank's problem loan ratio declined to 0.5%,
from a high of 3.1% in 2009. While Moody's
expects Swedbank to maintain strong asset quality, the rating agency
notes that the loan book includes significant sector concentration to
real estate, which has historically been a more volatile and cyclical
asset class: exposure to corporate property management stood at
210% of TCE at end-March.
Swedbank's rigorous focus on costs and margins has enabled the bank
to generate stable earnings in the low interest-rate environment.
Net income stood at 0.8% of tangible assets in 2014 and
Q1 2015, supported by an improvement in the bank's cost-to-income
ratio to 44% in Q1 2015, down from 57% in 2010.
Balanced against this strong performance, Moody's notes that
Swedbank's reliance on market funding exposes the bank to changes
in market confidence: market funding stood at 52% of tangible
banking assets at end March 2015.
The upgrade of Swedbank's long-term senior debt and deposit
ratings to Aa3 reflects the upgrade of the BCA to a3, and Moody's
forward-looking assessment of a very low loss given failure on
these instruments, translating into a two-notch uplift from
the a3 adjusted BCA. The LGF analysis assesses the banking group's
own volume of deposits and debt, and the volume of securities subordinated
to them in Moody's creditor hierarchy, which together offset the
decrease in government support assumptions. Moody's considers
it likely that Swedbank's cushion of bail-in able liabilities
will grow through 2015. Finally, Moody's includes a
moderate assessment of government support, translating into a one-notch
uplift.
WHAT COULD CHANGE THE RATING -- UP/DOWN
Swedbank's ratings could become subject to upward pressure following
a sustained track record of strong performance, paired with a material
reduction of reliance on market funding. The latter, however,
could negatively impact the LGF assessment. In addition,
Moody's would consider a reduction of the bank's sector concentrations
as credit positive. As reflected by the upgrade of Swedbank's
BCA, long-term deposits and senior unsecured ratings,
and corresponding stable outlook, downward pressure on the rating
is currently limited. Nevertheless, a deviation from the
bank's focus on low-risk lending, leading to a deterioration
in asset quality could exert downward pressure on the ratings.
++++++++++++++++++++++++++++
LIST OF AFFECTED RATINGS
Issuer: Danske Bank A/S
....Adjusted Baseline Credit Assessment ,
Affirmed baa1
....Baseline Credit Assessment , Affirmed
baa1
....Long-Term Issuer Rating ,
Upgraded to A2 Stable from A3 Ratings Under Review
....Short-Term Bank Deposit Ratings
, Upgraded to P-1 from P-2
....Senior Unsecured Regular Bond/Debenture,
Upgraded to A2 Stable from A3 Ratings Under Review
....Junior Subordinated Regular Bond/Debenture,
Affirmed Baa3(hyb)
....Pref. Stock Non-cumulative,
Affirmed Ba1(hyb)
....Senior Unsecured Medium-Term Note
Program, Upgraded to (P)A2 from (P)A3
....Senior Unsecured Deposit Program,
Upgraded to (P)A2 from (P)A3
....Short-Term Medium-Term Note
Program, Upgraded to (P)P-1 from (P)P-2
....Short-Term Deposit Program,
Upgraded to (P)P-1 from (P)P-2
....Short-Term Deposit Program,
Upgraded to P-1 from P-2
....Short-Term Commercial Paper,
Upgraded to P-1 from P-2
....Counterparty Risk Assessment , Assigned
Aa3(cr)
....Counterparty Risk Assessment , Assigned
P-1(cr)
....Outlook, Stable
Issuer: Danske Bank Plc
.....Adjusted Baseline Credit Assessment
, Affirmed baa1
.....Baseline Credit Assessment ,
Affirmed baa1
.....Long-Term Bank Deposit
Ratings, Confirmed at A2 Stable
.....Short-Term Bank Deposit
Ratings, Confirmed at P-1
.....Long-Term Issuer Rating,
Confirmed at A2 Stable
.....Senior Unsecured Regular Bond/Debenture,
Confirmed at A2 Stable
.....Pref. Stock Non-cumulative,
Affirmed Ba1(hyb)
.....Senior Unsecured Medium-Term
Note Program, Confirmed at (P)A2
.....Subordinate Medium-Term
Note Program, Affirmed (P)Baa2
.... Counterparty Risk Assessment ,
Assigned Aa3(cr)
.... Counterparty Risk Assessment ,
Assigned P-1(cr)
....Outlook, Stable
Issuer: Danske Corporation
.... Backed Short-Term Commercial Paper,
Upgraded to P-1 from P-2
Issuer: Danske Bank A/S (London Branch)
....Senior Unsecured Deposit Program,
Upgraded to (P)A2 from (P)A3
....Short-Term Deposit Program,
Upgraded to (P)P-1 from (P)P-2
....Outlook, Stable
Issuer: Leonia Corporate Bank plc
....Backed Senior Unsecured Regular Bond/Debenture,
Confirmed at A2 Stable - (Assumed by Danske Bank Plc)
....Outlook, Stable
Issuer: DNB Bank ASA
....Adjusted Baseline Credit Assessment ,
Upgraded to a3 from baa1
....Baseline Credit Assessment , Upgraded
to a3 from baa1
....Long-Term Bank Deposit Ratings,
Upgraded to Aa2 Stable from A1 Ratings Under Review
....Short-Term Bank Deposit Ratings,
Affirmed P-1
....Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa3 Stable from A1 Ratings Under Review
....Subordinate Regular Bond/Debenture,
Upgraded to Baa1(hyb) from Baa2(hyb) Ratings Under Review
....Pref. Stock Non-cumulative,
Upgraded to Baa3(hyb) from Ba1(hyb) Ratings Under Review
....Short-Term Commercial Paper,
Affirmed P-1
....Senior Unsecured Medium-Term Note
Program, Upgraded to (P)Aa3 from (P)A1
....Subordinate Medium-Term Note Program,
Upgraded to (P)Baa1 from (P)Baa2
....Short-Term Medium-Term Note
Program, Affirmed (P)P-1
....Counterparty Risk Assessment , Assigned
Aa1(cr)
....Counterparty Risk Assessment , Assigned
P-1(cr)
....Outlook, Stable
Issuer: Den norske Bank ASA
....Senior Unsecured Medium-Term Note
Program, Upgraded to (P)Aa3 from (P)A1
....Subordinate Medium-Term Note Program,
Upgraded to (P)Baa1 from (P)Baa2
....Short-Term Medium-Term Note
Program, Affirmed (P)P-1
....Outlook, Stable
Issuer: Den norske Creditbank
....Backed Junior Subordinated Regular Bond/Debenture,
Upgraded to Baa2(hyb) from Baa3(hyb)
Issuer: DNB Bank ASA, New York Branch
....Long-Term Bank Deposit Rating,
Upgraded to Aa2 Stable from A1 Ratings Under Review
....Short-Term Bank Deposit Rating,
Affirmed P-1
....Senior Unsecured Deposit Note/Takedown,
Upgraded to Aa2 Stable from A1 Ratings Under Review
....Short-Term Senior Unsecured Deposit
Note/Takedown, Affirmed P-1
....Outlook, Stable
Issuer: Nordea Bank AB
....Adjusted Baseline Credit Assessment ,
Affirmed a3
....Baseline Credit Assessment , Affirmed
a3
....Long-Term Bank Deposit Ratings,
Confirmed at Aa3 Stable
....Short-Term Bank Deposit Ratings,
Affirmed P-1
....Senior Unsecured Regular Bond/Debenture,
Confirmed at Aa3 Stable
....Subordinate Regular Bond/Debenture,
Affirmed Baa1
....Pref. Stock Non-cumulative,
Affirmed Ba1(hyb)
....Pref. Stock Non-cumulative,
Affirmed Baa3(hyb)
....Backed Pref. Stock Non-cumulative,
Affirmed Baa3(hyb)
....Short-Term Commercial Paper,
Affirmed P-1
....Senior Unsecured Medium-Term Note
Program, Confirmed at (P)Aa3
....Subordinate Medium-Term Note Program,
Affirmed (P)Baa1
....Junior Subordinated Medium-Term
Note Program, Affirmed (P)Baa2
....Short-Term Medium-Term Note
Program, Affirmed (P)P-1
....Counterparty Risk Assessment , Assigned
Aa2(cr)
....Counterparty Risk Assessment , Assigned
P-1(cr)
....Outlook, Stable
Issuer: Nordea Bank Danmark A/S
....Adjusted Baseline Credit Assessment ,
Downgraded to a3 from a2
....Baseline Credit Assessment , Affirmed
baa1
....Long-Term Bank Deposit Rating,
Upgraded to Aa3 Stable from A1 Ratings Under Review
....Short-Term Bank Deposit Rating,
Affirmed P-1
....Long-term Issuer Rating ,
Upgraded to Aa3 Stable from A1 Ratings Under Review
....Senior Unsecured Medium-Term Note
Program, Upgraded to (P)Aa3 from (P)A1
....Short-Term Medium-Term Note
Program, Affirmed (P)P-1
....Counterparty Risk Assessment , Assigned
Aa2(cr)
....Counterparty Risk Assessment , Assigned
P-1(cr)
....Outlook, Stable
Issuer: Nordea Bank Finland Plc
....Adjusted Baseline Credit Assessment ,
Downgraded to a3 from a2
....Baseline Credit Assessment , Affirmed
a3
....Long-Term Bank Deposit Ratings,
Confirmed at Aa3 Stable
....Short-Term Bank Deposit Ratings,
Affirmed P-1
....Long-term Issuer Rating Confirmed
at Aa3 Stable
....Senior Unsecured Regular Bond/Debenture,
Confirmed at Aa3 Stable
....Senior Unsecured Medium-Term Note
Program, Confirmed at (P)Aa3
....Subordinate Medium-Term Note Program,
Confirmed (P)Baa1
....Junior Subordinated Medium-Term
Note Program, Confirmed (P)Baa2
....Short-Term Medium-Term Note
Program, Affirmed (P)P-1
....Counterparty Risk Assessment , Assigned
Aa2(cr)
....Counterparty Risk Assessment , Assigned
P-1(cr)
....Outlook, Stable
Issuer: Nordea Bank Finland Plc, NY Branch
....Long-Term Bank Deposit Rating,
Confirmed at Aa3 Stable
....Senior Unsecured Deposit Note/Takedown,
Confirmed at Aa3 Stable
....Outlook, Stable
Issuer: Nordea Bank Norge ASA
....Adjusted Baseline Credit Assessment ,
Downgraded to a3 from a2
....Baseline Credit Assessment , Upgraded
to a3 from baa1
....Long-Term Bank Deposit Ratings,
Confirmed at Aa3 Stable
....Short-Term Bank Deposit Ratings,
Affirmed P-1
....Senior Unsecured Regular Bond/Debenture,
Confirmed at Aa3 Stable
.... Counterparty Risk Assessment ,
Assigned Aa2(cr)
.... Counterparty Risk Assessment ,
Assigned P-1(cr)
....Outlook, Stable
Issuer: Nordea North America, Inc.
.... Backed Short-Term Commercial Paper,
Affirmed P-1
Issuer: SEB
.... Adjusted Baseline Credit Assessment ,
Upgraded to a3 from baa1
.... Baseline Credit Assessment , Upgraded
to a3 from baa1
.....Long-Term Bank Deposit
Ratings, Upgraded to Aa3 Stable from A1 Ratings Under Review
.... Short-Term Bank Deposit Ratings,
Affirmed P-1
.... Long-Term Issuer Rating ,
Upgraded to Aa3 Stable from A1 Ratings Under Review
.....Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa3 Stable from A1 Ratings Under Review
.....Subordinate Regular Bond/Debenture,
Upgraded to Baa1 from Baa2 Ratings Under Review
.....Pref. Stock Non-cumulative,
Upgraded to Baa3(hyb) from Ba1(hyb) Ratings Under Review
.....Pref. Stock Non-cumulative,
Affirmed at Ba1(hyb)
.....Senior Unsecured Medium-Term
Note Program, Upgraded to (P)Aa3 from (P)A1
.....Subordinate Medium-Term
Note Program (Foreign Currency) , Upgraded to (P)Baa1 from (P)Baa2
.... Junior Subordinate Medium-Term
Note Program, Upgraded to (P)Baa2 from (P)Baa3
.....Short-Term Deposit Program,
Affirmed P-1
.....Short-Term Commercial Paper,
Affirmed P-1
.....Backed Short-Term Commercial
Paper, Affirmed P-1
.... Counterparty Risk Assessment ,
Assigned Aa2(cr)
.... Counterparty Risk Assessment ,
Assigned P-1(cr)
....Outlook, Stable
Issuer: SEB AG
.... Adjusted Baseline Credit Assessment ,
Upgraded to a3 from baa1
.... Baseline Credit Assessment , Upgraded
to baa3 from ba1
.....Long-Term Bank Deposit
Ratings, Upgraded to A2 Stable from Baa1 Ratings Under Review
.... Short-Term Bank Deposit Ratings,
Upgraded to P-1 from P-2
.... Counterparty Risk Assessment ,
Assigned Aa3(cr)
.... Counterparty Risk Assessment ,
Assigned P-1(cr)
....Outlook, Stable
Issuer: Svenska Handelsbanken AB
....Adjusted Baseline Credit Assessment ,
Upgraded to a2 from a3
....Baseline Credit Assessment , Upgraded
to a2 from a3
....Long-Term Bank Deposit Ratings,
Upgraded to Aa2 Stable from Aa3 Ratings Under Review
....Short-Term Bank Deposit Ratings,
Affirmed P-1
....Long-term Issuer Rating ,
Upgraded to Aa2 Stable from Aa3 Ratings Under Review
....Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa2 Stable from Aa3 Ratings Under Review
....Backed Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa2 Stable from Aa3 Ratings Under Review
....Subordinate Regular Bond/Debenture,
Upgraded to A3 from Baa1 Ratings Under Review
....Pref. Stock Non-cumulative,
Upgraded to Baa2(hyb) from Baa3(hyb) Ratings Under Review
....Pref. Stock Non-cumulative,
Upgraded to Baa2(hyb) from Baa3(hyb) Stable
....Short-Term Commercial Paper,
Affirmed P-1
....Short-Term Deposit Program,
Affirmed P-1
....Senior Unsecured Medium-Term Note
Program, Upgraded to (P)Aa2 from (P)Aa3
....Backed Senior Unsecured Medium-Term
Note Program, Upgraded to (P)Aa2 from (P)Aa3
....Subordinate Medium-Term Note Program,
Upgraded to (P)A3 from (P)Baa1
....Backed Subordinate Medium-Term
Note Program, Upgraded to (P)A3 from (P)Baa1
....Junior Subordinated Medium-Term
Note Program, Upgraded to (P)Baa1 from (P)Baa2
....Backed Junior Subordinated Medium-Term
Note Program, Upgraded to (P)Baa1 from (P)Baa2
....Short-Term Medium-Term Note
Program, Affirmed (P)P-1
Backed Short-Term Medium-Term Note Program,
Affirmed (P)P-1
....Counterparty Risk Assessment , Assigned
Aa1(cr)
....Counterparty Risk Assessment , Assigned
P-1(cr)
....Outlook, Stable
Issuer: Stadshypotek AB
.... Short-Term Commercial Paper,
Affirmed P-1
.... Counterparty Risk Assessment ,
Assigned Aa1(cr)
.... Counterparty Risk Assessment ,
Assigned P-1(cr)
Issuer: Svenska Handelsbanken, Inc.
.... Backed Short-Term Commercial Paper,
Affirmed P-1
Issuer: Svenska Handelsbanken, New York Branch
....Long-Term Bank Deposit Rating,
Upgraded to Aa2 Stable from Aa3 Ratings Under Review
....Senior Unsecured Deposit Note/Takedown,
Upgraded to Aa2 Stable from Aa3 Ratings Under Review
....Counterparty Risk Assessment , Assigned
Aa1(cr)
....Counterparty Risk Assessment , Assigned
P-1(cr)
....Outlook, Stable
Issuer: Swedbank AB
....Adjusted Baseline Credit Assessment ,
Upgraded to a3 from baa1
....Baseline Credit Assessment , Upgraded
to a3 from baa1
....Long-Term Bank Deposit Rating,
Upgraded to Aa3 Stable from A1 Ratings Under Review
....Short-Term Bank Deposit Rating,
Affirmed P-1
....Long-term Issuer Rating ,
Upgraded to Aa3 Stable from A1 Ratings Under Review
....Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa3 Stable from A1 Ratings Under Review
....Subordinate Regular Bond/Debenture,
Upgraded to Baa1 from Baa2 Ratings Under Review
....Pref. Stock Non-cumulative
, Upgraded to Baa3(hyb) from Ba1(hyb) Ratings Under Review
....Backed Pref. Stock Non-cumulative
, Upgraded to Baa3(hyb) from Ba1(hyb) Ratings Under Review
....Short-Term Commercial Paper,
Affirmed P-1
....Short-Term Deposit Program,
Affirmed P-1
....Senior Unsecured Medium-Term Note
Program , Upgraded to (P)Aa3 from (P)A1
....Senior Unsecured Deposit Program ,
Upgraded to (P)Aa3 from (P)A1
....Subordinate Medium-Term Note Program,
Upgraded to (P)Baa1 from (P)Baa2
....Junior Subordinated Medium-Term
Note Program, Upgraded to (P)Baa2 from (P)Baa3
....Short-Term Medium-Term Note
Program, Affirmed (P)P-1
....Counterparty Risk Assessment , Assigned
Aa2(cr)
....Counterparty Risk Assessment , Assigned
P-1(cr)
....Outlook, Stable
Issuer: Swedbank Mortgage AB
....Long-Term Issuer Rating ,
Upgraded to Aa3 Stable from A1 Ratings Under Review
....Short-Term Commercial Paper,
Affirmed P-1
....Backed Short-Term Commercial Paper,
Affirmed P-1
....Senior Unsecured Medium-Term Note
Program , Upgraded to (P)Aa3 from (P)A1
....Backed Senior Unsecured Medium-Term
Note Program , Upgraded to (P)Aa3 from (P)A1
....Short-Term Medium-Term Note
Program, Affirmed (P)P-1
....Backed Short-Term Medium-Term
Note Program, Affirmed (P)P-1
....Counterparty Risk Assessment , Assigned
Aa2(cr)
....Counterparty Risk Assessment , Assigned
P-1(cr)
....Outlook, Stable
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Banks published in
March 2015. Please see the Credit Policy 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 rating action on the support provider and in relation to each particular
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 rating action, and
whose ratings may change as a result of this 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.
The following information supplements Disclosure 10 ("Information
Relating to Conflicts of Interest as required by Paragraph (a)(1)(ii)(J)
of SEC Rule 17g-7") in the regulatory disclosures made at
the ratings tab on the issuer/entity page on www.moodys.com
for each credit rating as indicated:
Moody's was not paid for services other than determining a credit
rating in the most recently ended fiscal year by the person(s) that paid
Moody's to determine this credit rating.
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.
The following ratings Debt numbers 824382400 and 824382488 assigned to
Nordea Bank AB were not initiated or not maintained at the request of
the rated entity.
The following rating Debt number 824324739 assigned to SEB was not initiated
or not maintained at the request of the 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 rated entities Nordea Bank AB, SEB 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.
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.
Oscar Heemskerk
Associate Managing Director
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 concludes review on 6 Nordic banking groups and their subsidiaries
