S&P: Swedish banks negative

Standard & Poor's said it revised its outlooks on eight Swedish banks to negative from stable: Svenska Handelsbanken AB, Nordea Bank AB, Skandinaviska Enskilda Banken AB (publ), Swedbank AB, Landshypotek AB, Sparbanken 1826, Swedbank Sjuharad AB, and SBAB Bank AB.

The agency said it also affirmed its long- and short-term counterparty credit ratings on these banks.

At the same time, the agency affirmed the ratings on Lansforsakringar Bank and Swedish Export Credit Corp. The outlooks on these two banks remain stable.

S&P said it believes the negative trends in the Swedish economy will be in part driven by a slowdown in the euro zone that will be more protracted and deeper than previously expected. This may further weaken the business cycle in Sweden, which is highly reliant on exports to the euro zone.

The agency said it forecasts higher economic risks for the Swedish banking industry, based on indications of a sharper economic slowdown than previously expected.

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