Research Update: Sweden-Based SBAB Bank Rating Lowered To 'A' On Reassessment Of Government Support; Outlook Negative Dec 12
- Language: English
- Published: December 2012
The ratings on Sweden-based Sveriges Bostadsfinansieringsaktiebolag, SBAB (publ) (SBAB) reflect the low-risk nature of the company's business of mortgage banking; its sound financial profile; its ownership by the Swedish government; and the owner's commitment of support. SBAB existing bondholders also benefit from a government ownership clause, which states that they have the right to redeem their bonds if the government ceases to be the majority owner. The long-term rating is constrained below that of the sovereign, however, due to the commercial nature of SBAB's business, which makes the company a possible future candidate for privatization. With total assets of Swedish krona (Skr) 162.0 billion ($20.4 billion at Skr7.95 to $1) at Dec. 31, 2005, SBAB ranks as the fifth-largest mortgage...
Companies mentioned in this report are:
- SBAB Bank AB
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included. SHOW LESS READ MORE >