Fitch affirms Handelsbanken

Fitch Ratings said it affirmed Svenska Handelsbanken AB's (Handelsbanken) long-term issuer default rating at AA-, short-term issuer default rating at F1+ and viability rating at AA-.

The outlook is stable.

The agency also affirmed the company's senior unsecured debt at AA-, subordinated debt at A+, upper tier 2 debt at A- and hybrid debt at BBB+.

The agency also affirmed Stadshypotek's long-term issuer default rating at AA-, short-term issuer default rating at F1+, along with Svenska Handelsbanken Inc.'s U.S. commercial-paper rating at F1+.

The ratings reflect Handelsbanken's strong Swedish franchise, solid capitalization, resilient asset quality and stable earnings, Fitch said.

The ratings also consider the bank's relatively high leverage, as well as structural reliance on wholesale funding, the agency said.

The ratings are sensitive to any reduced focus on holding high quality liquid assets, significantly increased leverage and material worsening in asset quality, Fitch added.

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