Moody's keeps Swedbank on review

Moody's Investors Service said that Swedbank AB's A1 senior debt and deposit ratings remain on review for possible downgrade following the bank's recent announcement of its intention to increase its share capital by approximately 15 billion Swedish kronor through an issuance of ordinary shares, which would increase the group's pro-forma core tier 1 capital ratio to 12.1% from 9.8% at the end of June.

The agency said the significant capital increase will be incorporated into its review as a positive element.

However, in its review, which began April 27, Moody's will also take into account the bank's higher expected losses due to the continuing severe deterioration of the macro-economic conditions in the Baltic countries and Ukraine, coupled with worsened economic conditions in Sweden.

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