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Swedish banks suffer from downgrad

Tuesday, 20 November 2012
Standard & Poor's (S&P) is reported to have lowers the outlook of Swedish leading banks to negative from stable.

Eight Swedish banks, including the four major banks Nordea, Swedbank, SEB and Handelsbanken are affected, writes the credit rating agency in a statement according to reports from various Swedish media outlets.

S & P refers to the economic outlook for Sweden which has become weakened and that there are signals that the economy is slowing down faster than expected. Moreover, there are structural imbalances in the economy and significantly weakened automatic stabilizers, which makes the credit rating agency concluded that the risks to the banking sector is increasing.

"We could lower our ratings on banks operating in Sweden if we see a prolonged economic decline over the next 18 to 24 months, with a growing number of bankruptcies, falling property prices and rising unemployment, "wrtte S & P according to reports.

Other banks with lowered outlook includes Landshypotek, Sparbanken 1826, Swedbank Sjuhärad and SBAB. Länsförsäkringar and Swedish Export Credit has continued stable outlook.
by Scancomark.com Team

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