Fitch upgrades Swedbank to A+, Outlook Stable
Fitch Ratings has upgraded Swedish bank Swedbank AB’s long term rating to A+ from A, with a long term stable outlook.
The rating agency said the Swedish bank had improved its “ability to absorb moderate shocks.”
“This is driven by its strengthened capitalisation and reduced risk profile resulting from strong risk management implemented by the new management with a focus on risk-returns rather than volume growth.”
That said, Fitch pointed to the eurozone crisis a potential source of a future downgrade, which could hit the bank’s ability to access debt capital markets. Swedbank also regains exposure to Baltic markets, where it remains although it has decided to pull back from the Russian and Ukrainian retail markets.
Swedbank also remains heavily reliant on the performance of the Swedish economy to remain profitable, Fitch said.
The bank’s short term rating is affirmed at F1.