Moody's changes Danske Bank outlook to positive

Moody's Investors Service said it affirmed Danske Bank A/S' Baa1 long-term debt rating, Ba1 (hyb) junior subordinated debt, Ba2 (hyb) preferred stock rating and P-2 short-term debt rating and changed the outlook to positive from stable.

The agency said the outlook change was based on the expectation that Danske Bank will show a continued improvement in profitability, substantially closing the gap in this area compared with peers, while at the same time maintaining a high level of capital and a prudent risk profile.

The affirmation of Danske Bank's ratings reflects the group's market leading position in Denmark and Northern Ireland and good foothold in Finland, Sweden and Norway, Moody's said.

Moody's noted that Danske Bank has experienced high credit costs in the Republic of Ireland, and the continued challenging operating environment in its main Danish market has resulted in comparatively low profitability for the group in recent years.

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