Moody's confirms Swedbank ratings

Moody's Investors Service said it confirmed Swedbank AB's senior unsecured debt ratings and placed the ratings on negative outlook.

This rating action concludes the review for downgrade on Swedbank's senior unsecured debt rating started Oct. 5, following the Swedish resolution authority's proposal for updated minimum requirements for eligible liabilities and own funds which will result in Swedish banks needing to issue lower levels of additional loss-absorbing debt. The rating action also considers the bank's current capital and funding plan, Moody’s said

The outlook indicates the downside risk that Swedbank may not issue sufficient senior non-preferred debt to support the three notch uplift above the baa1 baseline credit assessment, given uncertainties around the pace of balance sheet growth and as the bank may reduce its management buffer, which currently is planned to be very substantial, above the minimum requirements, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.