Limassol, March 05, 2020 -- Moody's Investors Service (Moody's) has today taken action on seven Norwegian
savings banks' Baseline Credit Assessments (BCAs) and ratings,
in addition to the ratings of a covered bond issuance company.
The rating actions on the seven banks fall into three categories:
1) Moody's has upgraded the BCAs and deposit/debt ratings with stable
outlook for SpareBank 1 Ostlandet and SpareBank 1 Nord-Norge;
2) The rating agency has also affirmed the BCA and ratings of Sparebanken
Vest and changed the outlook to positive from stable; and 3) Moody's
has affirmed the BCA, where applicable, and ratings with stable
outlook for SpareBank 1 SR-Bank ASA (SpareBank 1 SR), SpareBank
1 SMN, SpareBank 1 BV, SpareBank 1 Boligkreditt (SpaBol) and
Helgeland Sparebank.
Today's rating actions reflect, to differing degrees, the
Norwegian savings banks resilience through the economic cycle, coupled
with Moody's expectation of steady profitability and low levels
of asset risk. The rating action also takes into account the supportive
operating environment in Norway, characterised by unique countercyclical
mechanisms, which will continue to help offset downside risks related
to the banks' relatively narrow geographic focuses and high credit
concentrations in cyclical sectors.
Rating actions include:
- Upgrade of SpareBank 1 Ostlandet's long-term deposit
and senior unsecured debt ratings to Aa3, from A1, with a
stable outlook. Upgrade of the bank's BCA and Adjusted BCA to a3
from baa1;
- Upgrade of SpareBank 1 Nord-Norge's long-term
deposit and senior unsecured debt ratings to Aa3, from A1,
with a stable outlook. Upgrade of the bank's BCA and Adjusted BCA
to a3 from baa1;
- Affirmation of Sparebanken Vest's A1 long-term deposit
and senior unsecured debt, with the outlook changed to positive
from stable. Affirmation of the bank's baa1 BCA and Adjusted BCA.
- Affirmation of SpareBank 1 SR's A1 long-term deposit
and senior unsecured debt, with a stable outlook. Affirmation
of the bank's baa1 BCA and Adjusted BCA.
- Affirmation of SpareBank 1 SMN's A1 long-term deposit
and senior unsecured debt, with a stable outlook. Affirmation
of the bank's baa1 BCA and Adjusted BCA.
- Affirmation of SpareBank 1 BV's A2 long-term deposit
and issuer ratings, with a stable outlook. Affirmation of
the bank's baa1 BCA and Adjusted BCA.
- Affirmation of Helgeland Sparebank's A3 long-term
deposit and issuer ratings, with a stable outlook. Affirmation
of the bank's baa2 BCA and Adjusted BCA.
- Affirmation of SpaBol's A2 issuer rating with a stable outlook,
which is the covered bond issuer for the SpareBank 1 Alliance Banks.
A full list of the banks' ratings is provided at the end of this
press release.
RATINGS RATIONALE
Today's rating action reflects, to differing degrees,
the banks' consistently robust standalone financial performance
through the credit cycle, as well as their resilience to downside
risks stemming from relatively high level of credit concentrations (both
geographical and sectoral) compared to international peers.
UPGRADES OF SPAREBANK 1 OSTLANDET AND SPAREBANK 1 NORD-NORGE
The upgrades of SpareBank 1 Ostlandet and SpareBank 1 Nord-Norge's
BCA to a3 from baa1 and long-term deposit and senior unsecured
ratings to Aa3 from A1, reflect their consistently stronger financial
performance compared to peers, including particularly resilient
asset quality and strong capital metrics throughout the credit cycle.
Despite sizeable exposures to the cyclical commercial real-estate
(CRE) sector, they have demonstrated a strong track record of low
credit losses, even during the period of low oil prices (2014-16)
that affected the Norwegian economy. Moody's expects this
strong performance to be maintained. The higher BCA of a3 also
reflects these banks' strong capital buffers, combined with
satisfactory profitability, business growth potential and solid
regional positioning in a highly competitive market. The banks'
financial profiles compare favourably to similarly rated international
peers with geographically concentrated loan books.
The stable outlook for SpareBank 1 Ostlandet and SpareBank 1 Nord-Norge
reflects the agency's expectation that these financial metrics will
remain stable in the foreseeable future, supported by robust capital
and profitability metrics despite some downside risks stemming from credit
concentrations.
RATING AFFIRMATION OF SPAREBANKEN VEST AND CHANGE TO POSITIVE OUTLOOK
The affirmation of Sparebanken Vest's baa1 BCA and A1 long-term
deposit and senior unsecured ratings reflects a broadly improving level
of asset quality over the last five years, evidenced by a declining
problem loans to gross loans ratio, albeit at a level still higher
than SpareBank 1 Ostlandet and SpareBank 1 Nord Norge. The rating
affirmation also balances the bank's exposures to more cyclical
sectors with some downside risks emanating from the shipping and oil sector,
and also from loans to the commercial real-estate sector.
The change in outlook on Sparebanken Vest's deposit ratings to positive
from stable, recognises the bank's continuously improving
asset quality and profitability combined with better efficiency levels,
growing deposits and its relatively strong capital base which could translate
to a rating upgrade over the next 12-18 months if such performance
is sustained. Sparebanken Vest has recently launched a new digital
mortgage banking platform 'Bulder bank', which if successful
could further strengthen its earnings capacity.
RATING AFFIRMATION WITH STABLE OUTLOOK FOR SPAREBANK 1 SR, SPAREBANK
1 SMN, SPAREBANK 1 BV AND HELGELAND SPAREBANK
The affirmations of SpareBank 1 SR's, SpareBank 1 SMN's,
SpareBank 1 BV's and Helgeland Sparebank's BCAs and ratings
reflect the agency's view that these banks, along with the
other rated savings banks, have strongly entrenched franchises in
the regions they operate providing support to the overall strengthening
in performance metrics that has occurred over recent years. The
rating affirmation also balances downside risks for these banks that are
comparatively greater due to higher credit risk concentrations to cyclical
sectors (including commercial real estate and oil/offshore shipping).
The stable outlook for SpareBank 1 SR, SpareBank 1 SMN, SpareBank
1 BV and Helgeland Sparebank reflects Moody's view that the current
ratings remain correctly positioned when compared to both local and international
peers, as well as the agency's expectations that the banks'
performance will remain stable in the foreseeable future and broadly in
line with the assigned ratings.
DETAILED RATING RATIONALE FOR UPGRADES
-- SPAREBANK 1 OSTLANDET
SpareBank 1 Ostlandet's rating upgrade is driven by the upgrade
of its BCA to a3 from baa1, which in turn reflects the bank's
high levels of capital with a common equity Tier 1 (CET1) ratio of 17.2%
in December 2019, and a leverage ratio of 7.2% providing
a strong loss absorbing capacity. Moody's believes that SpareBank
1 Ostlandet will continue to boast high capital metrics, sustaining
its ability to withstand severe shocks and potential losses. This
combined with the bank's very strong asset quality, with problem
loans at only 0.3% of gross loans (including covered bond
loans) in December 2019, and lending growth of 7.5%
with low loan-to-value (LTV) retail mortgages (almost 95%
of total loans have an LTV below 70%), ensures continuation
of the best-in-class track record of minimal credit losses.
The upgrade also considers the bank's good recurring profitability
with no exposure to the cyclical oil sector, and its strong return
on equity (RoE) of 12.8% in 2019 although with some one-off
gains. In addition, the bank also has a comfortable liquidity
and funding profile, with a liquidity coverage ratio (LCR) of 162%
as of December 2019 and deposits growing annually by 9.8%.
SpareBank 1 Ostlandet's Aa3 long-term deposit and senior
debt ratings also take into account the rating agency's Advanced
Loss Given Failure (LGF) analysis, which provides three notches
of rating uplift from its BCA of a3, incorporating the expected
issuance of senior non-preferred (SNP) debt until the end of 2022.
The stable outlook is underpinned by Moody's expectation that the
bank will continue to perform robustly with profitable growth and sound
capital management, commensurate to other rated banks globally with
a BCA of a3. Additionally, Moody's Advanced LGF analysis
indicates no near term upward or downward pressure on ratings.
-- SPAREBANK 1 NORD-NORGE
SpareBank 1 Nord-Norge's rating upgrade reflects its BCA
upgrade to a3 from baa1. This follows the bank's very strong
financial performance track record over recent years, with a normalised
RoE of 12.8% in 2019, against a target of 12%.
This was supported by an increased net interest margin (NIM), as
deposit margins have been increasing easing the pressure from lending
margins, which have compressed due to intense competition.
Net fees and commissions increased by around 5.5% during
2019, while the bank posted a normalised cost-to-income
ratio of 42.9% against a long-term target of 40%.
SpareBank 1 Nord Norge's standalone credit profile is also supported
by a comfortable CET1 of 16.7% as of December 2019,
and a leverage ratio at 7.5%. The BCA upgrade to
a3 from baa1 also considers the bank's favourable asset quality
and the rating agency's expectation that its problem loans will
remain low. The bank reported problem loans of only 0.3%
of gross loans in December 2019. The bank's loan book is
well diversified with limited exposure to the cyclical oil sector (0.8%
of gross loans including covered bond loans), with around 6%
of gross loans going to the agriculture and fisheries sectors.
SpareBank 1 Nord Norge's Aa3 long-term deposit and senior
debt ratings also incorporate the rating agency's Advanced LGF analysis,
which provides three notches of rating uplift from its BCA of a3,
considering the expected issuance of SNP debt until the end of 2022.
The stable outlook reflects Moody's expectation that the bank's
performance will continue to be resilient, and consistent with a
BCA level of a3, while the rating agency's Advanced LGF analysis
shows no indication of any upward or downward rating pressure.
DETAILED RATING RATIONALE FOR SPAREBANKEN VEST'S POSITIVE OUTLOOK
The affirmation on Sparebanken Vest's A1 long-term deposit
and senior debt ratings and baa1 BCA reflects the bank's strong
regional retail franchise, good capital position (reported CET1
ratio of 17.4% as of end-December 2019) and comfortable
liquidity and funding profile. The ratings affirmation also balances
the bank's exposures to more cyclical sectors.
The bank's A1 long-term deposit and senior debt ratings also
incorporate the rating agency's Advanced LGF analysis, which
provides three notches of rating uplift from its BCA of baa1, considering
the expected issuance of SNP debt until the end of 2022. Moody's
LGF analysis indicates that the three notches of rating uplift is firmly
positioned.
The positive outlook on Sparebanken Vest's long-term A1 deposit
ratings indicates upward pressure on its BCA and recognises the progress
in improving its asset quality as well as its strong 2019 results.
Problem loans declined to 0.6% of gross loans in December
2019, from 0.9% in December 2018, with a significant
reduction in the corresponding ratio in its corporate portfolio (1.4%
in 2019 down from 2.7% in 2018). The bank's
earnings were supported by an overall lending growth of 6.1%
during 2019, an improvement in its net interest margin to 1.55%
in 2019 from 1.46% in 2018, almost flat operating
expenses and very low credit losses for the year amounting to only 0.03%
of gross loans.
Sparebanken Vest's comfortable liquidity and funding profile is
also a supporting factor for the positive outlook, with customer
deposits growing at 9.8% in 2019 improving its deposits
to loans ratio to 47.1% in 2019 from 45.6%
in 2018. The rating agency expects the bank to sustain its strong
earnings performance in 2020. Sparebanken Vest's digital
mortgage bank ('Bulder Bank'), which was launched last
year, has the potential to contribute to the bank's earnings
going forward.
DETAILED RATIONALE FOR THE AFFIRMATION OF FOUR BANKS' AND SPABOL'S
RATINGS WITH STABLE OUTLOOKS
The affirmation of the following banks' BCAs, ratings,
and the stable outlook on their deposits and senior unsecured debt,
where applicable, balances the good performance metrics of these
four banks through the cycle and strong operating environment, against
the downside risks which stem from operating in more limited geographic
areas than many international peers, together with comparatively
higher concentrations to cyclical sectors.
The rating agency believes that the BCAs of all four banks are firmly
positioned at their current level, with no immediate negative or
positive pressure exerted on their standalone credit profile or ratings
from Moody's Advanced LGF analysis.
-- SpareBank 1 SR
The affirmation of SpareBank 1 SR's A1 long-term deposit
and senior debt ratings with a stable outlook is driven by the affirmation
of its BCA of baa1. The bank's BCA reflects its solid regional
market position, strong capital buffers (reported CET1 capital ratio
of 17% as of December 2019), resilient pre-provision
income combined with lower credit impairments (0.11% of
gross loans in 2019, down from 0.16% in 2018).
These strengths are balanced against the bank's credit-risk concentrations
in more cyclical sectors, such as oil/offshore (around 4.2%
of gross loans in December 2019) and commercial real estate.
The bank maintains a sound overall asset quality with reported stage 3
loans to gross loans ratio (including financial commitments and loans
sold to SpaBol and SpareBank 1 Næringskreditt AS) of around 1.5%
in December 2019, although higher than local peers. Concurrently,
the rating agency recognises the bank's resilient performance in
recent years, despite some challenges in certain oil-related
exposures.
The bank's A1 long-term deposit and senior debt ratings also
incorporate the rating agency's Advanced LGF analysis, which
provides three notches of rating uplift from its BCA of baa1, considering
the expected issuance of SNP debt until the end of 2022.
Moody's forward-looking expectation is that the bank's asset
quality, profitability (with a lean cost structure, normalised
cost-to-income of 40.8% in 2019) and capitalisation
will remain robust in the current operating environment in Norway,
driving its stable outlook.
-- SpareBank 1 SMN
Moody's affirmed SpareBank 1 SMN's long-term deposit and
senior unsecured debt ratings of A1 with a stable outlook, following
the affirmation of its BCA at baa1. The BCA affirmation reflects
the bank's strong retail franchise in central Norway supporting
its robust core earnings and its solid capital metrics with a reported
CET1 capital ratio of 17.2% and a leverage ratio of 7.5%
in December 2019. These positive rating drivers are balanced against
some downside credit risks stemming from its oil-related exposures
of around 2.5% of total exposure at default in December
2019, which includes a number of restructured loans.
SpareBank 1 SMN has maintained sound metrics with a reported problem loans
to gross loans (including covered bond loans) ratio of around 1.3%
at end-December 2019 and cost of risk of 0.18% of
gross loans, which while low in absolute terms, was at the
higher end among the large savings banks and was mainly emanating from
its oil-related exposures. Nonetheless, the affirmation
of the bank's BCA reflects a strong performance in 2019 with an
RoE of 13.7% and significant contribution to the bank's
earnings from fees and commissions comprising approximately 40%
of its total core income (excluding gains from securities and affiliated
companies).
The bank's A1 long-term deposit and senior debt ratings also
incorporate the rating agency's Advanced LGF analysis, which
provides three notches of rating uplift from its BCA of baa1, considering
the expected issuance of SNP debt until the end of 2022.
The stable outlook is driven by Moody's expectation that the bank's
performance and underlying financial metrics will continue to be resilient
and consistent with its ratings, and also by the rating agency's
Advanced LGF that indicates no upward or downward pressure.
-- SpareBank 1 BV
The affirmation of SpareBank 1 BV's deposit ratings of A2 with stable
outlook, is mainly driven by the firm positioning of its BCA of
baa1. The bank's BCA reflects its strong asset quality (problem
loans ratio of 0.6% in 2019, down from 0.8%
in 2018) and relatively stable retail operations and earnings.
It also considers its robust capitalisation with the highest among its
peers CET1 ratio of 18.3%, combined with a leverage
ratio of 8.5% in December 2019. The bank's
BCA is supported by the bank's growing retail deposit base that
increased by a high 10.4% during 2019.
These credit strengths are balanced against the bank's higher than
peers focus on retail mortgages and the commercial real estate sector
(combined exposure of around 95% of total loans including covered
bond loans as of December 2019) that makes it more vulnerable to property
price fluctuations. The bank's BCA also takes into account
its relatively high level of market funding, although with a strong
liquidity position with an LCR of 230% in December 2019.
The bank's A2 long-term deposit and issuer ratings also incorporate
the rating agency's Advanced LGF analysis, which provides
two notches of rating uplift from its BCA of baa1, considering the
volume of subordinated obligations in its liability structure.
The stable outlook indicates the rating agency's view that it expects
no upward or downward pressure on the bank's BCA or ratings over
the next 12-18 months, as also indicated by the rating agency's
LGF analysis.
-- Helgeland Sparebank
Helgeland Sparebank's A3 deposit and issuer ratings were affirmed with
a stable outlook, reflecting the affirmation of its baa2 BCA.
Helgeland Sparebank's baa2 BCA reflects Norway's supportive operating
environment combined with the bank's comfortable capitalisation
with a CET1 capital ratio of 16.5% as of the end of 2019
and recovered profitability during 2019, as well as, healthy
operating efficiency.
These credit strengths are balanced against the bank's limited geographical
reach with 82% of loans extended within its home district of Helgeland
at the end of 2019, concentration in the cyclical real estate and
construction sectors and material, although declining, single-name
concentrations that drove a recent peak in credit costs of 0.9%
of gross loans and consumed 67% of pre-provision income
in 2018 (although the latter ratio averaged a stronger 20% over
a 10-year period). The BCA also incorporates the bank's
material market funding reliance.
The bank's A3 long-term deposit and issuer ratings incorporate
Moody's Advanced LGF analysis, which provides two notches
of rating uplift from its standalone BCA of baa2, considering the
bank's liability structure.
The stable rating outlook reflects Moody's view that Helgeland Sparebank's
financials will remain broadly resilient over the next 12-18 months
and that its asset quality will continue to improve towards historical
levels. The stable outlook is also driven by the rating agency's
Advanced LGF analysis, which indicates no upward or downward rating
pressure.
-- SpaBol
SpaBol's A2 long-term issuer rating affirmation with a stable outlook,
is derived from the weighted-average credit profile of the larger
individual banks forming the SpareBank 1 Alliance in Norway. Accordingly,
the ratings assigned to SpaBol take into consideration the ratings assigned
to its top five rated owner-banks (SpareBank 1 Ostlandet,
SpareBank 1 SMN, SpareBank 1 Nord-Norge, SpareBank
1 BV and SpareBank 1 SR), as well as the rating agency's assessment
of the likelihood that these banks will support SpaBol in case of need.
The rating upgrade of SpareBank 1 Ostlandet and SpareBank 1 Nord-Norge
does not have an immediate impact on SpaBol's ratings, as
the two banks' shareholdings do not represent a majority ownership
(41% combined as of December 2019) in the covered bond entity.
This also drives SpaBol's stable outlook, which is consistent
with the stable outlook of the other SpareBank 1 Alliance banks (SpareBank
1 SMN, SpareBank 1 BV and SpareBank 1 SR), indicating no expected
upward or downgrade rating pressure in the next 12-18 months.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS
In line with the rating agency's general view of the banking sector,
Moody's assesses that the seven Norwegian savings banks affected
by today's action and SpaBol have low exposure to Environmental
risks and moderate exposure to Social risks. These savings banks
have relatively low exposure to Norway's oil and off-shore
sector, which is a source of environmental risk in the face of an
eventual transition to a low-carbon economy.
Furthermore, Moody's does not have particular governance concerns
for the Norwegian banks affected by this rating action and does not apply
a corporate behaviour adjustment to any of these banks. Nevertheless,
governance is highly relevant to all banks and requires ongoing monitoring.
WHAT COULD MOVE THE RATINGS UP/DOWN
- FOR BANKS WITH STABLE OUTLOOK
Upward rating momentum could develop if the banks show: (1) sustained
improvements in their asset quality trends, especially in more volatile
cyclical sectors including oil/offshore shipping and commercial real estate;
(2) continued good access to capital markets and strong liquidity on a
sustainable basis; (3) strong earnings generation without an increase
in their risk profile; and/or (4) a potential material increase in
junior liabilities that could change Moody's LGF analysis,
triggering a rating upgrade for more senior ratings.
Future downward rating pressure, which is less likely, would
emerge if: (1) banks' problem loans ratio increases well above
the average of its similarly-rated peers; (2) financing conditions
become more difficult; (3) the banks' credit risk profile increases,
for example as a result of increased exposures to more cyclical sectors;
(4) the macroeconomic environment weakens significantly, leading
to a lower Macro Profile for Norway; (5) a reduction in the rating
uplift as a result of the rating agency's Advanced LGF analysis,
triggered by lower loss-absorbing cushion (subordinated liabilities)
for the bank's senior creditors.
- FOR SPAREBANKEN VEST WITH POSITIVE OUTLOOK
The bank's positive rating outlook could result in a deposit and
senior unsecured debt rating upgrade over the next 12-18 months,
should the bank continue to demonstrate resilience in its financial performance
and an ability to maintain strong levels of asset quality and capitalisation,
combined with satisfactory recurring profitability.
In view of the bank's positive rating outlook, Moody's
does not expect any downward pressure on the bank's BCA over the
next 12-18 months. Although unlikely, a potential
reduction in the rating uplift as a result of Moody's Advanced LGF
analysis, triggered by lower loss-absorbing cushion (subordinated
liabilities) for the bank's senior creditors, could lead to
a rating downgrade.
LIST OF AFFECTED RATINGS
..Issuer: SpareBank 1 Nord-Norge
Upgrades:
.... Adjusted Baseline Credit Assessment,
Upgraded to a3 from baa1
.... Baseline Credit Assessment, Upgraded
to a3 from baa1
.... Long-term Counterparty Risk Assessment,
Upgraded to Aa3(cr) from A1(cr)
.... Long-term Counterparty Risk Ratings,
Upgraded to Aa3 from A1
.... Issuer Rating, Upgraded to Aa3
from A1, Outlook Remains Stable
.... Senior Unsecured MTN Program, Upgraded
to (P)Aa3 from (P)A1
.... Junior Subordinate MTN Program,
Upgraded to (P)Baa2 from (P)Baa3
.... Subordinate MTN Program, Upgraded
to (P)Baa1 from (P)Baa2
.... Preferred Stock Non-cumulative,
Upgraded to Baa3(hyb) from Ba1(hyb)
.... Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa3 from A1, Outlook Remains Stable
.... Long-term Bank Deposit Ratings,
Upgraded to Aa3 from A1, Outlook Remains Stable
Affirmations:
.... Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
.... Short-term Counterparty Risk Ratings,
Affirmed P-1
.... Short-term Bank Deposit Ratings,
Affirmed P-1
Outlook Action:
....Outlook Remains Stable
..Issuer: SpareBank 1 Ostlandet
Upgrades:
.... Adjusted Baseline Credit Assessment,
Upgraded to a3 from baa1
.... Baseline Credit Assessment, Upgraded
to a3 from baa1
.... Long-term Counterparty Risk Assessment,
Upgraded to Aa3(cr) from A1(cr)
.... Long-term Counterparty Risk Ratings,
Upgraded to Aa3 from A1
.... Issuer Rating, Upgraded to Aa3
from A1, Outlook Remains Stable
.... Senior Unsecured MTN Program, Upgraded
to (P)Aa3 from (P)A1
.... Junior Subordinate MTN Program,
Upgraded to (P)Baa2 from (P)Baa3
.... Subordinate MTN Program, Upgraded
to (P)Baa1 from (P)Baa2
.... Senior Unsecured Regular Bond/Debenture,
Upgraded to Aa3 from A1, Outlook Remains Stable
.... Long-term Bank Deposit Ratings,
Upgraded to Aa3 from A1, Outlook Remains Stable
Affirmations:
.... Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
.... Short-term Counterparty Risk Ratings,
Affirmed P-1
.... Short-term Bank Deposit Ratings,
Affirmed P-1
Outlook Action:
....Outlook Remains Stable
..Issuer: SpareBank 1 SMN
Affirmations:
.... Adjusted Baseline Credit Assessment,
Affirmed baa1
.... Baseline Credit Assessment, Affirmed
baa1
.... Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
.... Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
.... Long-term Counterparty Risk Ratings,
Affirmed A1
.... Short-term Counterparty Risk Ratings,
Affirmed P-1
.... Issuer Rating, Affirmed A1,
Outlook Remains Stable
.... Senior Unsecured MTN Program, Affirmed
(P)A1
.... Junior Subordinate MTN Program,
Affirmed (P)Baa3
.... Subordinate MTN Program, Affirmed
(P)Baa2
.... Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Remains Stable
.... Subordinate Regular Bond/Debenture,
Affirmed Baa2(hyb)
.... Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Remains Stable
.... Short-term Bank Deposit Ratings,
Affirmed P-1
Outlook Action:
....Outlook Remains Stable
..Issuer: SpareBank 1 SR-Bank ASA
Affirmations:
.... Adjusted Baseline Credit Assessment,
Affirmed baa1
.... Baseline Credit Assessment, Affirmed
baa1
.... Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
.... Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
.... Long-term Counterparty Risk Ratings,
Affirmed A1
.... Short-term Counterparty Risk Ratings,
Affirmed P-1
.... Issuer Rating, Affirmed A1,
Outlook Remains Stable
.... Senior Unsecured MTN Program, Affirmed
(P)A1
.... Junior Subordinate MTN Program,
Affirmed (P)Baa3
.... Subordinate MTN Program, Affirmed
(P)Baa2
.... Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Remains Stable
.... Subordinate Regular Bond/Debenture,
Affirmed Baa2(hyb)
.... Subordinate Regular Bond/Debenture,
Affirmed Baa2
.... Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Remains Stable
.... Short-term Bank Deposit Ratings,
Affirmed P-1
Outlook Action:
....Outlook Remains Stable
..Issuer: SpareBank 1 BV
Affirmations:
.... Adjusted Baseline Credit Assessment,
Affirmed baa1
.... Baseline Credit Assessment, Affirmed
baa1
.... Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
.... Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
.... Long-term Counterparty Risk Ratings,
Affirmed A1
.... Short-term Counterparty Risk Ratings,
Affirmed P-1
.... Issuer Ratings, Affirmed A2,
Outlook Remains Stable
.... Long-term Bank Deposit Ratings,
Affirmed A2, Outlook Remains Stable
.... Short-term Bank Deposit Ratings,
Affirmed P-1
Outlook Action:
....Outlook Remains Stable
..Issuer: SpareBank 1 Boligkreditt AS
Affirmations:
.... Long-term Counterparty Risk Assessment,
Affirmed A2(cr)
.... Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
.... Long-term Counterparty Risk Ratings,
Affirmed A2
.... Short-term Counterparty Risk Ratings,
Affirmed P-1
.... Issuer Ratings, Affirmed A2,
Outlook Remains Stable
Outlook Action:
....Outlook Remains Stable
..Issuer: Sparebanken Vest
Affirmations:
.... Adjusted Baseline Credit Assessment,
Affirmed baa1
.... Baseline Credit Assessment, Affirmed
baa1
.... Long-term Counterparty Risk Assessment,
Affirmed A1(cr)
.... Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
.... Long-term Counterparty Risk Ratings,
Affirmed A1
.... Short-term Counterparty Risk Ratings,
Affirmed P-1
.... Senior Unsecured MTN Program, Affirmed
(P)A1
.... Junior Subordinate MTN Program,
Affirmed (P)Baa3
.... Subordinate MTN Program, Affirmed
(P)Baa2
.... Other Short Term, Affirmed (P)P-1
.... Senior Unsecured Regular Bond/Debenture,
Affirmed A1, Outlook Changed to Positive from Stable
.... Long-term Bank Deposit Ratings,
Affirmed A1, Outlook Changed to Positive from Stable
.... Short-term Bank Deposit Ratings,
Affirmed P-1
Outlook Action:
....Outlook Changed to Positive from Stable
..Issuer: Helgeland Sparebank
Affirmations:
.... Adjusted Baseline Credit Assessment,
Affirmed baa2
.... Baseline Credit Assessment, Affirmed
baa2
.... Long-term Counterparty Risk Assessment,
Affirmed A2(cr)
.... Short-term Counterparty Risk Assessment,
Affirmed P-1(cr)
.... Long-term Counterparty Risk Ratings,
Affirmed A2
.... Short-term Counterparty Risk Ratings,
Affirmed P-1
.... Issuer Ratings, Affirmed A3,
Outlook Remains Stable
.... Long-term Bank Deposit Ratings,
Affirmed A3, Outlook Remains Stable
.... Short-term Bank Deposit Ratings,
Affirmed P-2
Outlook Action:
....Outlook Remains Stable
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Banks Methodology
published in November 2019. 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, category/class of
debt or security this announcement provides certain regulatory disclosures
in relation to each rating of a subsequently issued bond or note of the
same series, category/class of debt, security 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.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
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 rating analyst and the Moody's legal entity that has issued
the ratings.
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.
Nondas Nicolaides
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Sean Marion
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
