Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's takes rating actions on four large Swedish banks due to MREL requirements

20 Apr 2018

Deposit and senior debt ratings of SEB and Swedbank AB upgraded, while those of Nordea Bank AB and Svenska Handelsbanken AB affirmed. Some high trigger Additional Tier 1 (AT1) ratings placed on review for downgrade

London, 20 April 2018 -- Moody's Investors Service has today upgraded the long-term deposit and senior unsecured debt ratings of SEB and Swedbank AB (Swedbank) to Aa2 from Aa3, while affirming those of Svenska Handelsbanken AB (Handelsbanken) at Aa2, incorporating Moody's expectations of the banks' issuance of additional loss-absorbing debt in response to bank-specific MREL (Minimum Requirements for own funds and Eligible Liabilities) requirements set by the Swedish resolution authority. We also affirmed the long-term deposit and senior unsecured debt ratings of Nordea Bank AB (Nordea) at Aa3 as the bank is planning to move to Finland in October this year and we assess that the current TLAC (Total Loss-Absorbing Capacity) requirement is not significant enough to justify an upgrade. The future MREL requirement under SRB (Single Resolution Board) has yet to be determined. All aforementioned ratings carry stable outlooks.

Future issuance of additional loss-absorbing debt will reduce loss severity for junior depositors and senior unsecured creditors according to Moody's advanced Loss Given Failure (LGF) analysis. The upgrade of SEB's and Swedbank AB's LT deposit and senior unsecured debt ratings, with a stable outlook, reflect our expectations that the bank-specific subordination requirements applicable as of 1 January 2022, along with management buffers, will be significant enough to justify an additional uplift in our LGF analysis. The affirmation of Handelsbanken's LT deposit and senior unsecured debt ratings, with a stable outlook, reflects the fact that the subordination requirement for the bank will fall short of justifying an additional uplift in our LGF analysis. The affirmation of Nordea's LT deposit and senior unsecured debt ratings with a stable outlook reflect Moody's view that the current TLAC requirement is not sizeable enough to justify an upgrade. Moody's will continue to monitor the future SRB MREL requirement for Nordea and assess any credit implications once it is published.

Moody's has also placed the high trigger AT1 ratings of SEB, Swedbank AB and Svenska Handelsbanken on review for downgrade as there will be negative pressure on these if the Swedish FSA adopts the current proposal to move the risk-weight floor for mortgages from pillar II to pillar I. Whereas nominal capital requirements will remain virtually unchanged, this will lower capital ratios, including CET1, thereby reducing the distance between the banks' expected future CET1 ratios and the trigger point of 8% (when the instrument could be fully or partially either written down or converted to equity). The high trigger AT1 rating of Nordea has been affirmed as we expect the future CET1 ratio to be in line with the current rating of Ba1.

The full list of the affected ratings can be found at the end of this press release.

RATINGS RATIONALE

UPGRADES REFLECT REDUCED LOSS SEVERITY FOR CREDITORS FROM EXPECTED ISSUANCE OF ADDITIONAL LOSS-ABSORBING DEBT

The rating actions reflect Moody's expectations of the banks' issuance of additional loss-absorbing capital, generally expected to be issued as non-preferred senior debt, as a response to the Swedish National Debt Office's (SNDO), the Swedish resolution authority, recapitalisation part of the MREL requirements (which have to be met by MREL debt even if banks have excess capital). The SNDO published these decisions, along with the subordination requirements for the four large banks, on 20 December 2017. Banks have until 1 January 2022 to fulfil the subordination requirements.

In our advanced LGF assessment, we have also taken into account the Swedish Financial Supervisory Authority's (SFSA) proposal from 28 March 2018 to move the 25% risk-weight floor for Swedish mortgages to pillar I from pillar II, as our base case scenario is that the proposal will be adopted in its current form. This would lower future MREL recapitalisation requirements as the SNDO currently includes the combined buffer related to the "25% risk-weight floor Swedish mortgages" in pillar II, but this will be deducted once the capital held for the risk-weigh floor will be transferred to Pillar I. The lower MREL recapitalisation amounts are expected to come into effect when the SNDO recalculates updated capital requirements, at year-end 2019.

Moody's attaches a high degree of confidence to the likelihood that these banks will fulfil the regulatory MREL requirements, adding buffers, with the subordination required as of 2022, and therefore apply a forward looking time-horizon as per our updated methodology.

In particular, we expect that depositors and senior unsecured creditors of SEB and Swedbank would benefit from sufficient subordination in the liability structure by year-end 2021, which would likely reduce the loss given failure, resulting in a 3 notches uplift. Our projections for Handelsbanken show that the additional MREL issuance will not deliver sufficient additional subordination to significantly reduce loss rates for senior creditors. As Nordea is planning to move to Finland, Moody's will continue to monitor the future SRB MREL requirement for Nordea and assess any credit implications once it is published.

All large Swedish banks are heavily reliant on market funding today and have significant amounts of senior unsecured outstanding. We expect that SEB and Swedbank will replace about half of their current senior by non-preferred senior whereas the corresponding proportion for Handelsbanken is about one-third, and for Nordea it will depend on its future requirement. The large Swedish banks' have excellent access to global funding markets, and we expect this transition to be smooth, barring any major financial crisis or disruption in the funding markets, such as during the global financial crisis.

Additional bank-specific reasons for the rating actions are outlined below (all key financial indicators are as of Q4 2017).

RATIONALE BEHIND THE UPGRADE OF SEB'S AND SWEDBANK AB'S LT DEPOSIT AND SENIOR UNSECURED DEBT RATINGS, AND PLACEMENT OF HIGH TRIGGER AT1S ON REVIEW FOR DOWNGRADE

SEB

The rating upgrade of SEB's LT deposit and senior unsecured debt ratings to Aa2 from Aa3 reflect Moody's expectations that the bank will issue significant amounts of non-preferred senior debt to fulfil the recapitalisation part of the MREL requirements by year-end 2021 which will provide an additional cushion for junior depositors and senior debt creditors. The CRA (Aa2(cr) LT CRA) was affirmed as it already receives three notches of LGF uplift, which is the highest uplift in our advanced LGF analysis. SEB's deposit and senior unsecured debt ratings, along with the CRA, also include an additional notch due to our moderate assessment of government support.

The a3 BCA of SEB remains unaffected and reflects the bank's strong credit quality, solid capitalisation (23.8% TCE/RWAs) and improved recurring earnings (0.8% NI/TBAs). These positive credit attributes are balanced against the bank's high reliance on market funding.

The review for downgrade assigned to SEB's high trigger AT1 rating of Baa3 (hyb) reflects Moody's expectation that moving the risk-weight floor for mortgages to pillar I will likely cause the CET1 ratio of the bank to decline, and thereby reduce the margin to the trigger of 8%. During the review, Moody's will take into account the expected capital ratio and consider any update to the bank's capital and funding plan, to assess the updated capital ratio relative to the AT1 threshold.

Swedbank AB

The rating upgrade of Swedbank AB's LT deposit and senior unsecured debt ratings reflect Moody's expectations that the bank will issue significant amounts of non-preferred senior debt to fulfil the recapitalisation part of the MREL requirements, along with a management buffer, by year-end 2021 which will provide an additional cushion for junior depositors and senior debt creditors. Even though Swedbank would not get the additional uplift on the basis of the requirement only, we give credit to the bank's buffer as they will need to hold a sizeable buffer to protect against foreign currency volatility (as the requirement is in LC but funding primarily will be in FC). The CRA (Aa2(cr) LT CRA) was affirmed as it already receives three notches of LGF uplift, which is the highest uplift in our advanced LGF model. Swedbank's deposit and senior unsecured debt ratings, along with the CRA, also include an additional notch due to our moderate assessment of government support.

The a3 BCA of Swedbank remains unaffected and captures the bank's strong credit quality, solid regulatory capitalisation (31.1% TCE/RWAs), and strong and recurring earnings (0.9% NI/TBAs). However, similar to many Nordic peers, the BCA is counterbalanced by the bank's high reliance on market funding, even if the bank's reliance on market funding has declined compared to previous years.

The review for downgrade assigned to Swedbank's high trigger AT1 rating of Baa3 (hyb) reflects Moody's expectation that moving the risk-weight floor for mortgages to pillar I will likely cause the CET1 ratio of the bank to decline, and thereby reduce the margin to the trigger of 8%. During the review, Moody's will take into account the expected capital ratio and consider any update to the bank's capital and funding plan, to assess the updated capital ratio relative to the AT1 threshold.

RATIONALE BEHIND THE AFFIRMATION OF SVENSKA HANDELSBANKEN AB'S LT DEPOSIT AND SENIOR UNSECURED DEBT RATINGS, AND PLACEMENT OF HIGH TRIGGER AT1S ON REVIEW FOR DOWNGRADE

Svenska Handelsbanken AB

The affirmation of Handelsbanken's Aa2 LT bank deposit and senior unsecured debt ratings reflect Moody's expectations that the bank's issuance of non-preferred senior debt to fulfil the recapitalisation part of the MREL requirements by year-end 2021 will be important, but will fall short of attaining an additional notch of LGF uplift. The CRA (Aa1(cr) LT CRA) was affirmed as it already receives three notches, which is the highest LGF uplift. Handelsbanken's LT deposit and senior unsecured debt ratings, along with the CRA, also include an additional notch resulting from our moderate assessment of government support.

The a2 BCA of Handelsbanken remains unaffected and reflects the bank's very strong credit quality, which we expect to remain as it expands outside Sweden, its solid capital position (27.6% TCE/RWAs) and stable earnings (0.7% NI/TBAs). However, similar to many Nordic peers, these inherent strengths are counterbalanced by the bank's high reliance on market funding.

The review for downgrade assigned to Handelsbanken's high trigger AT1 rating of Baa2 (hyb) reflects Moody's expectation that moving the risk-weight floor for mortgages to pillar I will likely cause the CET1 ratio of the bank to decline, and thereby reduce the margin to the trigger of 8%. During the review, Moody's will take into account the expected capital ratio and consider any update to the bank's capital and funding plan, to assess the updated capital ratio relative to the AT1 threshold.

RATIONALE BEHIND THE AFFIRMATION ON NORDEA BANK AB'S LT DEPOSITS AND SENIOR UNSECURED DEBT RATINGS

Nordea Bank AB

The affirmation of Nordea Bank AB's LT Aa3 deposit and senior unsecured debt ratings reflect Moody's assessment that the current TLAC requirement is not significant enough for the bank to reach an additional LGF notch. Moody's will continue to monitor the future SRB MREL requirement for Nordea and assess any credit implications once these are published. The CRA (Aa2(cr) LT CRA) was affirmed as it already receives three notches, which is the highest uplift in our advanced LGF analysis. Nordea's deposit and senior unsecured debt ratings, along with the CRA, also include an additional notch due to our moderate assessment of government support

The a3 BCA of Nordea remains unaffected and reflects the bank's diversified regional footprint in the Nordic region (with 32% of its lending excluding reverse repos in Sweden), good credit quality, robust capitalisation (24.9% Tangible Common Equity (TCE) to Risk-Weighted Assets (RWAs)), and stable and resilient earnings stream (0.6% Net Income (NI) to Tangible Banking Assets (TBAs), counterbalanced by the bank's high reliance on market funding.

The high trigger AT1 rating of Nordea has been affirmed as we expect the future CET1 ratio to be in line with the current rating of Ba1.

WHAT COULD MOVE THE RATINGS OF SEB, SWEDBANK AB, SVENSKA HANDELSBANKEN AB OR NORDEA AB UP

Moody's does not expect any immediate upward pressure on the ratings of SEB, Swedbank AB, Svenska Handelsbanken AB or Nordea AB, as implied by the stable outlook on these banks' ratings.

However, bank outlooks could be revised to positive if the affected banks were to significantly improve their leverage ratios, and/or funding and liquidity profiles in a sustainable way going forward. In addition, and applicable for Nordea only, if the SRB were to require sufficient subordination to justify an additional uplift, we would revisit the LGF assessment for Nordea.

WHAT COULD CHANGE THE RATINGS OF THE FOUR SWEDISH BANKS DOWN

Moody's does not expect any immediate downward pressure on the junior deposit and senior unsecured ratings of the affected institutions, as implied by the stable outlook on these instruments.

However, the BCAs and the ratings could be lowered if the current moderate correction in the housing market were to become significant, resulting in a longer period of adverse economic developments in Sweden, for instance a long period of slow or stagnant growth.

The BCAs of the banks could also come under pressure for other reasons unrelated to housing, such as a severe decline in profitability or, given the banks' material dependence on wholesale funding, if there were indications that refinancing could become more difficult and significantly more costly.

The high trigger AT1s of SEB, Swedbank and Handelsbanken could be downgraded if the CET1 ratio falls below the trigger points (as described in the bank-specific sections above) suggesting a lower rating in our contingent convertibles (CoCos) model, which could be the technical result of the SFSA moving the risk-weight floor for mortgages to pillar I from pillar II, as this would significantly reduce the margin to the trigger of 8% when the instrument could be fully or partially either written down or converted to equity.

Nordea Bank AB is headquartered in Stockholm, Sweden, with total assets of EUR 582 billion as at 31 December 2017.

Svenska Handelsbanken AB is headquartered in Stockholm, Sweden, with total assets of SEK 2,767 billion as at 31 December 2017.

SEB is headquartered in Stockholm, Sweden, with total assets of SEK 2,560 billion as at 31 December 2017.

Swedbank AB is headquartered in Stockholm, Sweden, with total assets of SEK 2,213 billion as at 31 December 2017.

LIST OF AFFECTED RATINGS

Issuer: Nordea Bank AB

Assignments:

....Junior Senior Unsecured MTN Program, Assigned (P)Baa1

Affirmations:

....LT Bank Deposits, Affirmed Aa3, Outlook remains Stable

....ST Bank Deposits, Affirmed P-1

....Senior Unsecured Regular Bond/Debenture, Affirmed Aa3, Outlook remains Stable

....Subordinate, Affirmed Baa1

....Pref. Stock Non-cumulative, Affirmed Ba1 (hyb)

....BACKED Pref. Stock Non-cumulative, Affirmed Baa3 (hyb)

....Senior Unsecured MTN Program, Affirmed (P)Aa3

....Subordinate MTN Program, Affirmed (P)Baa1

....Junior Subordinate MTN Program, Affirmed (P)Baa2

....Other Short Term Program, Affirmed (P)P-1

....Commercial Paper, Affirmed P-1

....LT Counterparty Risk Assessment, Affirmed Aa2(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

Outlook Actions:

....Outlook, remains Stable

Issuer: Nordea Bank AB (publ), NY Branch

Affirmations:

....LT Deposit Note/CD Program, Affirmed Aa3 Stable

Issuer: Nordea Bank Finland Plc

Affirmations:

....Senior Unsecured Regular Bond/Debenture, Affirmed Aa3 Stable

Issuer: Nordea Bank Norge ASA

Affirmations:

....Senior Unsecured Regular Bond/Debenture, Affirmed Aa3 Stable

Issuer: Svenska Handelsbanken AB

Affirmations:

....LT Issuer Rating, Affirmed Aa2 Stable

....LT Bank Deposits, Affirmed Aa2 Stable

....ST Bank Deposits, Affirmed P-1

....Senior Unsecured Regular Bond/Debenture, Affirmed Aa2 Stable

....BACKED Senior Unsecured Regular Bond/Debenture, Affirmed Aa2 Stable

....Subordinate, Affirmed A3

....Senior Unsecured MTN Program, Affirmed (P)Aa2

....BACKED Senior Unsecured MTN Program, Affirmed (P)Aa2

....Subordinate MTN Program, Affirmed (P)A3

....BACKED Subordinate MTN Program, Affirmed (P)A3

....BACKED Junior Subordinate MTN Program, Affirmed (P)Baa1

....Other Short Term Program, Affirmed (P)P-1

....ST Deposit Note/CD Program, Affirmed P-1

....Commercial Paper, Affirmed P-1

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

Placed under review for Downgrade;

....Pref. Stock Non-cumulative, Currently Baa2 (hyb)

....Pref. Stock Non-cumulative MTN Program , Currently (P)Baa2

Outlook Actions:

....Outlook, Remains Stable

Issuer: Stadshypotek AB

Affirmations:

....Commercial Paper, Affirmed P-1

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

Issuer: Svenska Handelsbanken, Inc.

Affirmations:

....BACKED Commercial Paper, Affirmed P-1

Issuer: Svenska Handelsbanken, New York Branch

Affirmations:

....LT Bank Deposits, Affirmed Aa2 Stable

....LT Deposit Note/CD Program, Affirmed Aa2 Stable

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

Outlook Actions:

....Outlook, Remains Stable

Issuer: Swedbank AB

Upgrades;

....LT Issuer Rating, Upgraded to Aa2 Stable from Aa3 Stable

....LT Bank Deposits, Upgraded to Aa2 Stable from Aa3 Stable

....Senior Unsecured Regular Bond/Debenture, Upgraded to Aa2 Stable from Aa3 Stable

....Senior Unsecured MTN Program, Upgraded to (P)Aa2 from (P)Aa3

....LT Deposit Note/CD Program, Upgraded to (P)Aa2 from (P)Aa3

Affirmations:

....ST Bank Deposits, Affirmed P-1

....Subordinate, Affirmed Baa1

....Pref. Stock, Affirmed Baa3 (hyb)

....BACKED Pref. Stock Non-cumulative, Affirmed Baa3 (hyb)

....Subordinate MTN Program, Affirmed (P)Baa1

....ST Deposit Note/CD Program, Affirmed P-1

....Other Short Term Program, Affirmed (P)P-1

....Commercial Paper, Affirmed P-1

....LT Counterparty Risk Assessment, Affirmed Aa2(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

Placed under review for Downgrade;

....Pref. Stock Non-cumulative, Currently Baa3 (hyb)

Outlook Actions:

....Outlook, Remains Stable

Issuer: Swedbank Mortgage AB

Upgrades;

....LT Issuer Rating, Upgraded to Aa2 Stable from Aa3 Stable

....Senior Unsecured MTN Program, Upgraded to (P)Aa2 from (P)Aa3

Affirmations:

....Other Short Term Program, Affirmed (P)P-1

....LT Counterparty Risk Assessment, Affirmed Aa2(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

Outlook Actions:

....Outlook, Remains Stable

Issuer: Swedbank AB, New York Branch

Upgrades;

....LT Deposit Note/CD Program, Upgraded to Aa2 Stable from Aa3 Stable

Outlook Actions:

....Outlook, Remains Stable

Issuer: SEB

Upgrades:

....LT Issuer Rating, Upgraded to Aa2 Stable from Aa3 Stable

....LT Bank Deposits, Upgraded to Aa2 Stable from Aa3 Stable

....Senior Unsecured Regular Bond/Debenture, Upgraded to Aa2 Stable from Aa3 Stable

....BACKED Senior Unsecured Regular Bond/Debenture, Upgraded to Aa2 Stable from Aa3 Stable

....Senior Unsecured MTN Program, Upgraded to (P)Aa2 from (P)Aa3

Affirmations:

....ST Bank Deposits, Affirmed P-1

....Subordinate, Affirmed Baa1

....Subordinate MTN Program, Affirmed (P)Baa1

....Junior Subordinate MTN Program, Affirmed (P)Baa2

....ST Deposit Note/CD Program, Affirmed P-1

....Commercial Paper, Affirmed P-1

....BACKED Commercial Paper, Affirmed P-1

....LT Counterparty Risk Assessment, Affirmed Aa2(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

Placed under review for Downgrade;

....Pref. Stock Non-cumulative, Currently Baa3 (hyb)

Outlook Actions:

....Outlook, Remains Stable

Issuer: SEB AG

Upgrades:

....LT Bank Deposits, Upgraded to Aa2 Stable from Aa3 Stable

Affirmations:

....ST Bank Deposits, Affirmed P-1

....LT Counterparty Risk Assessment, Affirmed Aa2(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

Outlook Actions:

....Outlook, Remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in September 2017. 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.

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.

Louise Lundberg
VP-Sr Credit Officer
Financial Institutions Group
Moody's Investors Service Limited, Stockholm Branch
Krejaren 2
Ostermalmstorg 1
Stockholm 114 42
Sweden
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 Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​
Moodys.com