S&P raises Swedbank's rating outlook to stable
Standard & Poor's Ratings Services (S&P) raised the credit rating outlook of Swedbank AB to stable. According to S&P, the outlook meant that Swedbank was better prepared to handle increasing risks in the economy of Sweden compared to its rival lenders. In addition, S&P also removed the bank's negative outlook on both its A-1 short-term opinion and A+ long-term rating.
"Swedbank's steadily improving capitalization and comparably balanced funding profile provide a buffer against the effect of the increased economic risks we see for banks in Sweden," according to a statement yesterday by S&P. "We believe Swedbank will maintain a relative advantage versus peers in terms of capital and earnings, funding and liquidity," S&P added.
The revised outlook for the bank came two months after ratings from Moody's Investors Service. Moody raised Swedbank's rating to A1 for long-term debt and deposit. A1, the fifth-highest investment-grade rating, was given because of reduced risks, increased levels of capital, and improved funding profile.