Historical rating actions
November 26, 2012
Moody's changed the outlook for Sweden's banking system to stable from negative. The stable outlook primarily reflects Moody's expectations that over the next 18-24 months asset quality will be strong overall, strengthening capital levels will provide a good buffer against modest asset-quality deterioration and continued moderate lending growth and low provisioning levels will continue to support profitability.
November 20, 2012
S&P put all major Swedish banks' on negative outlook due to view of weakening economy with signs of the economy slowing more sharply than expected. In addition S&P observe structural imbalances and significantly weakened automatic stabilizers, leading S&P to conclude that economic risks for the banking sector are increasing.
July 25, 2012
Fitch Ratings upgraded Swedbank AB’s Long-term Issuer Default Rating (IDR) to 'A+' from 'A' and its Viability Rating to 'a+' from 'a'. The Outlook for the Long-term IDR is Stable. At the same time Fitch affirmed the Short-Term IDR at 'F1'. The rationale for the upgrade reflects in Fitch’s view Swedbank's improved ability to absorb moderate shocks. This is driven by the bank’s strengthened capitalization, liquidity and funding position along with a reduced risk profile resulting from strong risk management implemented by the new management with a focus on risk-returns rather than volume growth. The ratings incorporate Fitch’s expectations of some further impairments as Swedbank exits the Russian and Ukrainian retail markets. Fitch highlights Swedbank's ability to absorb moderate shocks which is supported by its resilient revenue generation and normalising loan impairment charges since 2011 and expects that Swedbank will maintain a solid level of profitability in 2012 and 2013.
June 28, 2012
S&P confirmed Swedbank's and Swedbank Mortgage's long- and short-term rating with stable outlook. Following a full annual rating analysis the rating for Swedbank and Swedbank Mortgage was unchanged. Also Swedbank's stand alone rating was confirmed (a-) with stable outlook. Standard & Poor's bases the ratings on Swedbank on the 'a-' anchor. In S&P's view, it has an "adequate" business position, given its market-leading retail position and prudent management and strategy. S&P assess its capital and earnings as "adequate," given the existing ratios and projected capital generation, which S&P expect will lead to a risk-adjusted capital (RAC) ratio before diversification of around 9.5% in 18-24 months. Its "adequate" risk position is based on the bank's representative risk profile in each of its four primary banking markets. It has "average" funding given the strength of the Swedish covered bond market and diverse funding sources and "adequate" liquidity, resulting from demonstrated and sustainable capital market access and prudent liquidity buffers.
May 24, 2012
On May 24, Moody's confirmed Swedbank and Swedbank Mortgage's long- and short-term rating with stable outlook. Following the rating review for European banks Moody's published its results for the Swedish banks resulting in unchanged rating for Swedbank and Swedbank Mortgage's long- and short-term rating. Also Swedbank's stand alone rating was confirmed (C-) with stable outlook. The unchanged rating reflects, according to Moody's; "the substantial and continuing improvements in the bank's financial fundamentals, particularly liquidity metrics which improved due to lengthened funding maturities and increased liquidity reserves". The rating for dated subordinated debt (Lower Tier 2) was downgraded three nothes from A3 to Baa3 and the rating for junior, undated, subordinated debt (upper Tier 2) was downgraded one notch from Baa3 to Ba1.
February 15, 2012
On February 15, Moody's placed 114 financial institutions on rating review for possible downgrade. In connection to the rating action, the long term A2 rating and short term Prime-1 rating of Swedbank AB and Swedbank Mortgage AB respectively, where also placed on rating review. The actions reflect the potential negative impact on the Swedish economy from worsened growth prospects in the euro area and that Swedish banks are not immune to the difficulties facing the global financial markets. Moody's states that as a consequence they may reduce their assessment on a number of rating factors such as economic stability, franchise value, risk positioning, liquidity, profitability and capital. The review period for the Swedish banks is expected to be ended during the week of May 7, 2012.
December 1, 2011
S&P upgraded Swedbank’s long-term ratings to A+ from A, affirmed the A-1 short-term rating, raised the non deferrable subordinated debt rating A from A- and affirmed the junior subordinated debt rating on Swedbank at bbb-. The stand-alone credit profile (SACP) of Swedbank is a- and the outlook is stable. The upgrade reflects S&P’s view of Swedbank’s position as market leader in retail mortgages and deposits as well as mutual funds. The components of business-, capital and earnings-, risk- and funding and liquidity position are all considered well balanced. The stable outlook is based on continued stability on these factors noting Swedbank’s prudent risk appetite and strong capitalization.
September 16, 2011
Fitch Ratings affirmed Swedbank AB's Long-term Issuer Default Rating (IDR) at 'A', its Viability Rating at 'a' and affirmed the Short-term IDR at 'F1'. The Outlook for the Long-term IDR is Stable.
The affirmation reflects Swedbank's improving financial position, solid capitalisation and strong asset quality in its Swedish portfolio. It also factors in its significant, but stabilising, stock of non-performing loans (NPLs) in its Baltic, Russian and Ukrainian businesses, as well as its reliance on wholesale funding.
June 8, 2011
Moody’s upgraded Swedbank’s stand alone bank financial strength rating one notch to C-mapping to a BCA stand alone rating of Baa2 and raised the junior subordinated debt and Tier 1 hybrid securities one notch to Baa3 and Ba2 respectively with a positive outlook. The A2 long-term debt and deposit rating and A3 subordinated debt rating where affirmed with stable outlook. The upgrade reflects Moody’s view of the stabilization of asset quality in the Baltic operations and Swedbanks improving financial strength and good capital and liquidity metrics. Moody’s see an upside pressure on Swedbank Baa2 standalone credit rating.
March 2, 2011
Standard & Poor's upgraded Swedbank’s stand alone credit profile one notch to a- and raised the rating on the banks hybrid capital instruments by two notches to BBB-. The A long-term and A-1 short-term ratings where affirmed. The upgrade reflects S&P’s view of Swedbank’s improved funding profile, reduced credit risks, the favourable performance of the mortgage portfolio compared to its Swedish peers and improved macroeconomic situation in Swedbank’s primary markets.
November 16, 2010
Moody's placed Swedbank AB's and Swedbank Mortgage AB's all ratings on review for possible upgrade.