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MOODY'S, impressed with Swedish banks

Monday, 26 November 2012
credit rating agency, Moody's raises its outlook for Swedish banks to "stable" from "negative", the organisation notified on Monday making it stand at odds with rival Standard & Poor's.

Moody's announced on Monday that the outlook for the Swedish banking system is raised to "stable" from "negative," driven by factors such as changes is the quality of the country's banks assets.

"The number of underlying problem continued well below those in other banking systems, and we expect that the ability to repay in the future will benefit from low interest rates and household financial resilience, "writes Moody's.

The Institute also expects that increase in capital levels provide a good protection against deterioration in asset quality and moderate lending rates and make reservations support and profitability.

Last week Moody's biggest competitor, Standard & Poor's lowered the outlook of the Swedish banks to 'negative'.

This though, is seen by Moody's, similar risks and points out that major Swedish banks dependent on the capital markets to fund their operations.

The large share of Bank's capital which is being funded this way makes them vulnerable to changes in market conditions and is therefore a source of credit fears, according to Moody's.
by Scancomark.com Team

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